VF Corporation (VFC)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 5.81 4.60 4.08 3.82 3.74 3.49 3.26 3.58 7.30 7.92 6.71 7.81 8.33 6.17 4.79 5.27 6.40 6.42 5.39 6.52
Receivables turnover 7.99 8.03 5.90 9.24 7.09 7.37 6.35 9.41 7.97 7.59 6.01 8.94 7.01 6.20 5.57 10.18 8.02 6.54 5.35 7.96
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
Working capital turnover 13.23 11.25 6.56 8.03 7.11 16.54 34.03 10.25 9.19 8.25 6.77 6.82 3.53 1.83 1.95 2.09 5.24 4.90 4.46 5.09

The activity ratios of VF Corporation provide insight into the efficiency and effectiveness of its operations over time.

Inventory turnover has generally shown an increasing trend, indicating that the company is managing its inventory more efficiently and selling its products at a quicker pace. This is a positive sign as a higher turnover ratio suggests that VF Corporation is effectively managing its inventory levels.

Receivables turnover has fluctuated over the periods but generally remains at a steady level. A higher turnover ratio signifies that the company is able to collect its receivables more quickly, which is a positive indicator of its credit policies and collection efficiency.

Payables turnover has also exhibited fluctuations, but overall, it appears that VF Corporation is managing its payables effectively. A higher turnover ratio reflects that the company is paying its suppliers in a timely manner.

Working capital turnover has varied significantly, with a notable peak in September 2022. This indicates that VF Corporation is effectively utilizing its working capital to generate sales. A higher turnover ratio suggests that the company is efficiently using its resources to support its operations.

Overall, the activity ratios of VF Corporation reflect a mixed performance in terms of managing its inventory, receivables, payables, and working capital efficiently. Further analysis and comparison with industry benchmarks would provide more comprehensive insights into the company's operational efficiency over time.

Average number of days

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
Days of inventory on hand (DOH) days 62.86 79.42 89.55 95.50 97.57 104.71 112.03 101.90 49.99 46.09 54.38 46.73 43.81 59.20 76.12 69.31 57.00 56.88 67.73 56.00
Days of sales outstanding (DSO) days 45.66 45.43 61.90 39.52 51.46 49.51 57.49 38.77 45.81 48.09 60.75 40.82 52.06 58.83 65.58 35.87 45.52 55.78 68.23 45.88
Number of days of payables days 29.08 36.04 35.84 43.94 39.85 36.62 41.65 44.51 19.84 20.04 19.84 20.54 19.11 22.69 23.88 17.24 17.93 17.67 20.58 20.58

Days of inventory on hand (DOH) for VF Corporation have exhibited some fluctuations over the past few quarters, with an average of around 70 days. This suggests that the company holds inventory for approximately 2 to 3 months before it is sold, indicating a moderate efficiency in managing inventory levels.

Days of sales outstanding (DSO) have ranged between approximately 35 to 65 days, with an average of around 50 days. This indicates that VF Corporation takes about 1.5 to 2 months to collect payments from its customers, reflecting a reasonable credit management policy.

The number of days of payables for VF Corporation has varied between 17 to 45 days, with an average of around 30 days. This suggests that the company takes around 1 to 1.5 months to pay its suppliers, indicating efficient management of payables.

Overall, VF Corporation's activity ratios indicate a balance in managing inventory, receivables, and payables efficiently, which is crucial for maintaining liquidity and optimizing working capital.

Long-term

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
Fixed asset turnover 12.54 11.56 12.16 11.89 12.28 12.37 11.84 11.67 11.37 10.82 10.62 10.02 9.33 9.16 9.57 9.94 10.99 12.39 12.70 12.57
Total asset turnover 0.88 0.84 0.85 0.80 0.82 0.81 0.85 0.89 0.88 0.84 0.77 0.75 0.66 0.64 0.69 0.76 0.94 0.99 0.94 1.00

The fixed asset turnover ratio of VF Corporation has been relatively stable over the past few quarters, ranging from 10.02 to 12.54 times. This indicates that the company is efficiently utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio suggests that VF Corporation is able to generate more revenue per dollar invested in fixed assets.

On the other hand, the total asset turnover ratio has fluctuated more significantly, ranging from 0.64 to 0.99 times. This ratio measures VF Corporation's ability to generate sales from its total assets. A lower total asset turnover ratio may indicate that the company is not effectively utilizing all of its assets to generate revenue.

Overall, it appears that VF Corporation has been effectively managing its fixed assets to generate sales consistently, but there may be some challenges in optimizing the use of its total assets to generate revenue consistently over time. Monitoring and improving the total asset turnover ratio could help increase overall efficiency and profitability for the company.