VF Corporation (VFC)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	9,952,220	10,130,480	10,318,030	10,257,210	9,872,860	10,113,060	10,651,550	8,576,980	9,034,740	8,959,500	8,387,110	10,358,850	10,194,620	9,832,000	9,504,710	8,845,950	6,634,080	6,880,000	7,388,020	8,285,390
Payables	US$ in thousands	1,007,810	1,134,640	1,157,760	788,477	950,469	961,667	1,282,310	936,319	906,340	1,022,410	1,022,760	562,992	559,716	534,365	534,803	463,208	412,324	450,109	348,932	407,021
Payables turnover		9.88	8.93	8.91	13.01	10.39	10.52	8.31	9.16	9.97	8.76	8.20	18.40	18.21	18.40	17.77	19.10	16.09	15.29	21.17	20.36

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $9,952,220K ÷ $1,007,810K
= 9.88

The payables turnover of VF Corporation, which measures how efficiently the company is managing its accounts payable, has shown some fluctuations over the years.

From March 31, 2020, to June 30, 2021, the payables turnover ratio ranged between 15.29 and 21.17, indicating that VF Corporation was able to pay its suppliers relatively quickly during this period.

However, from June 30, 2022, to June 30, 2024, the payables turnover ratio decreased significantly, dropping to as low as 8.20. This may suggest that the company was taking longer to pay its suppliers, possibly due to changes in payment terms or cash flow constraints.

Towards the end of the period, the payables turnover improved slightly, reaching around 13.01 by March 31, 2024. This improvement could be a positive sign that VF Corporation is managing its payables more effectively.

Overall, it is essential for VF Corporation to closely monitor its payables turnover ratio to ensure timely payments to suppliers while maintaining a healthy cash flow position.