VF Corporation (VFC)

Receivables 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
Revenue (ttm)	US$ in thousands	9,794,050	9,852,870	10,068,710	10,184,130	10,558,980	11,142,770	11,214,850	11,421,180	11,537,730	11,647,950	11,764,430	11,695,020	11,354,050	10,739,450	10,184,120	9,100,770	8,757,870	8,941,450	9,514,190	10,488,550
Receivables	US$ in thousands	1,343,290	1,820,200	1,055,570	1,273,960	1,314,140	1,889,800	1,214,220	1,610,300	1,564,960	1,834,600	1,249,710	1,467,840	1,495,860	1,787,330	1,138,810	1,298,020	1,411,560	1,606,480	934,984	1,308,050
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

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $9,794,050K ÷ $1,343,290K
= 7.29

The receivables turnover ratio measures how efficiently VF Corporation is able to collect cash from its credit sales over a specific period. Looking at the data provided, we observe fluctuations in the receivables turnover ratio over the quarters.

The receivables turnover ratio ranged from a low of 5.41 on September 30, 2024, to a high of 10.18 on June 30, 2020. This indicates that on June 30, 2020, VF Corporation was collecting its accounts receivable more frequently than on September 30, 2024 when the turnover was lower.

It is noted that the receivables turnover ratio can be influenced by various factors including credit policies, customer payment behavior, and industry trends. Analyzing these fluctuations in the receivables turnover ratio can provide insights into the effectiveness of VF Corporation's credit and collection policies and its overall liquidity management.

Overall, a consistent and improving receivables turnover ratio suggests that VF Corporation is efficiently managing its accounts receivable and collecting cash from its credit sales, which is a positive indicator of the company's financial health and operational efficiency.