VF Corporation (VFC)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cost of revenue (ttm)	US$ in thousands	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	8,049,890	8,568,380	9,004,320
Payables	US$ in thousands	817,128	974,844	992,911	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	389,749	483,207	507,575
Payables turnover		12.55	10.13	10.19	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	20.65	17.73	17.74

March 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $10,257,210K ÷ $817,128K
= 12.55

The payables turnover ratio measures how efficiently VF Corporation is managing its accounts payable by comparing the company's purchases to its average accounts payable balance. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which may be a sign of strong liquidity management.

Analyzing VF Corporation's payables turnover over the past few quarters, we can see fluctuations in the ratio. In the most recent quarter, the payables turnover stood at 12.55, indicating an improvement in the efficiency of managing accounts payable compared to the previous quarter. This suggests that VF Corporation may be extending credit to its suppliers less and paying them more promptly.

Looking at the trend over multiple quarters, we note that the payables turnover ratio has been relatively stable, with some fluctuations, but generally staying within a certain range. In the earlier quarters, there were some quarters with significantly higher payables turnover, which could indicate different purchasing patterns or payment terms during those periods.

Overall, the payables turnover ratio for VF Corporation reflects its ability to effectively manage its accounts payable and suggests that the company has been consistent in its approach to supplier payments, with occasional variations in efficiency. It is important to continue monitoring this ratio to evaluate the company's cash flow management and relationships with suppliers.