VF Corporation (VFC)
Activity ratios
Short-term
Turnover ratios
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 | |
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Inventory turnover | 5.55 | 4.86 | 4.89 | 6.04 | 4.71 | 4.20 | 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 |
Receivables turnover | 7.29 | 5.41 | 9.54 | 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 |
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 |
Working capital turnover | 5.46 | 6.67 | — | 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 |
Based on the provided data, we can observe the following trends in VF Corporation's activity ratios:
1. Inventory Turnover:
- The inventory turnover ratio shows a fluctuating trend over the periods analyzed. It was relatively stable from March 2020 to June 2022, ranging from 3.26 to 8.33. However, a significant decline is noted in the latter part of the series from June 2022 to June 2024, dropping to as low as 3.26.
2. Receivables Turnover:
- The receivables turnover ratio demonstrates some variability but generally remains within the range of 5.41 to 10.18 during the periods examined. It indicates that VF Corporation is efficient in collecting outstanding receivables from customers.
3. Payables Turnover:
- The payables turnover ratio exhibits a generally decreasing trend over the analyzed periods. It ranges from 8.20 to 21.17 from March 2020 to June 2020 but then gradually decreases, hitting a low of 8.31 to 13.01 from June 2023 to March 2024.
4. Working Capital Turnover:
- The working capital turnover ratio displays considerable variability throughout the periods shown. It fluctuates significantly, ranging from 1.83 to 34.03. This ratio indicates the efficiency of utilizing working capital to generate revenue and suggests that VF Corporation experienced fluctuations in its working capital management efficiency.
Overall, analyzing these activity ratios provides insights into VF Corporation's operational efficiency in managing inventory, receivables, payables, and working capital. The trends in these ratios can help assess the company's efficiency in managing its resources and operations over time.
Average number of days
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 | ||
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Days of inventory on hand (DOH) | days | 65.81 | 75.05 | 74.66 | 60.42 | 77.42 | 86.81 | 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 |
Days of sales outstanding (DSO) | days | 50.06 | 67.43 | 38.27 | 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 |
Number of days of payables | days | 36.96 | 40.88 | 40.96 | 28.06 | 35.14 | 34.71 | 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 |
Based on the provided data, we can analyze VF Corporation's activity ratios, specifically the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.
1. Days of Inventory on Hand (DOH):
- The DOH measures the average number of days it takes for a company to sell its inventory. A lower DOH indicates that inventory is being managed efficiently.
- VF Corporation's DOH fluctuated over the analysis period, ranging from a low of 43.81 days to a high of 112.03 days.
- The trend shows that VF Corporation's inventory management improved in the recent periods, with a decrease in DOH towards the end of the period, which suggests more efficient inventory turnover.
2. Days of Sales Outstanding (DSO):
- The DSO ratio measures how long it takes for a company to collect payments after making a sale. A lower DSO indicates more effective accounts receivable management.
- VF Corporation's DSO varied during the analyzed period, with values ranging from 35.87 days to 67.43 days.
- The trend in DSO shows some fluctuations, but overall, the company maintained a somewhat stable collection period throughout the period, improving slightly towards the end.
3. Number of Days of Payables:
- The Number of Days of Payables ratio indicates the average number of days a company takes to pay its suppliers. A higher number suggests the company is taking longer to pay its bills.
- VF Corporation's Days of Payables also showed variability, ranging from 17.24 days to 44.51 days during the period under review.
- The trend in payables days reflects fluctuations but generally increased over the period, indicating the company took longer to pay its suppliers, potentially leading to better cash flow management or leveraging extended payment terms.
In summary, the analysis of VF Corporation's activity ratios suggests that the company improved its inventory management efficiency and maintained relatively stable accounts receivable collection practices, while also extending the time taken to pay its suppliers over the analyzed period.
Long-term
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 | |
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Fixed asset turnover | 13.63 | 13.04 | 12.68 | 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 |
Total asset turnover | 0.93 | 0.81 | 0.87 | 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 |
The Fixed Asset Turnover and Total Asset Turnover ratios provide insights into VF Corporation's efficiency in utilizing its fixed assets and total assets to generate sales revenue, respectively.
1. Fixed Asset Turnover:
- VF Corporation's Fixed Asset Turnover ratio has shown a positive trend over the years, increasing from 10.99 in March 2020 to 13.63 in December 2024.
- This indicates that the company has been able to generate more sales revenue per dollar of fixed assets invested, reflecting strong operational efficiency and asset utilization.
- The steady increase in the Fixed Asset Turnover ratio suggests effective management of VF Corporation's fixed assets to drive sales growth and profitability.
2. Total Asset Turnover:
- On the other hand, VF Corporation's Total Asset Turnover ratio fluctuates with a downward trend in recent periods, declining from 0.94 in March 2020 to 0.93 in December 2024.
- A decreasing Total Asset Turnover ratio may indicate that the company is becoming less efficient in utilizing its total assets to generate sales revenue.
- It is crucial for VF Corporation to closely monitor and improve its total asset utilization efficiency to ensure optimal returns on assets and overall operational performance.
In conclusion, while VF Corporation has demonstrated strong efficiency in generating sales revenue from its fixed assets, there is a need to focus on enhancing the utilization of total assets to drive sustainable growth and enhance overall financial performance.