VF Corporation (VFC)
Working capital 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 |
| Total current assets | US$ in thousands | 5,021,480 | 6,458,860 | 4,349,130 | 4,226,950 | 4,935,930 | 5,243,560 | 5,213,560 | 5,152,710 | 5,243,980 | 5,688,240 | 4,611,710 | 4,588,080 | 4,600,650 | 4,969,870 | 4,564,140 | 4,785,870 | 7,285,220 | 6,680,210 | 6,261,140 | 5,027,020 |
| Total current liabilities | US$ in thousands | 3,226,910 | 4,982,430 | 4,408,970 | 3,456,980 | 3,997,280 | 3,544,830 | 3,816,440 | 3,545,770 | 4,546,230 | 5,345,990 | 3,464,000 | 3,315,400 | 3,223,880 | 3,384,360 | 3,071,450 | 2,210,480 | 2,498,020 | 2,084,530 | 1,715,460 | 3,023,880 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,794,050K ÷ ($5,021,480K – $3,226,910K)
= 5.46
Based on the provided data, the working capital turnover ratio for VF Corporation has been fluctuating over the periods. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
Initially, in March 2020, the working capital turnover was 5.24, indicating that VF Corporation was able to generate $5.24 in sales for every $1 of working capital invested. Subsequently, the ratio decreased to 2.09 in June 2020 and further decreased to 1.95 in September 2020, suggesting a decline in the efficiency of working capital management during that period.
However, there was a notable improvement in the ratio over the following quarters, with a significant increase to 10.25 by June 2022, indicating a substantial improvement in working capital efficiency. The ratio peaked at 34.03 in September 2022, indicating that VF Corporation generated $34.03 in sales for every $1 of working capital invested.
The ratio experienced some fluctuations in the subsequent periods, with values such as 7.11 in March 2023 and 13.23 in March 2024. The working capital turnover ratio can provide insights into the company's operational efficiency and its ability to manage its working capital effectively to support sales growth.
Peer comparison
Dec 31, 2024