VF Corporation (VFC)

Working capital 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
Revenue (ttm)	US$ in thousands	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	10,743,540	10,571,120	10,393,120
Total current assets	US$ in thousands	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	4,155,700	4,775,210	3,990,860
Total current liabilities	US$ in thousands	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	1,962,090	2,404,340	1,947,140
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

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,184,130K ÷ ($4,226,950K – $3,456,980K)
= 13.23

The working capital turnover ratio for VF Corporation has fluctuated over the analyzed period. The ratio measures how efficiently the company is using its working capital to generate sales revenue.

From the data provided, we can observe that the working capital turnover ratio was relatively stable in the first half of 2019 but experienced significant fluctuations in the following years. It peaked at 34.03 in the third quarter of 2022, indicating that the company effectively utilized its working capital to generate sales during that period.

However, the ratio dropped sharply in subsequent quarters, with notable decreases in the second half of 2022 and the beginning of 2023. This could suggest challenges in managing working capital efficiently or changes in the company's operating conditions.

VF Corporation's working capital turnover ratio improved in the last two quarters of 2023 compared to the preceding periods but remained below the peak levels seen in 2022. Overall, the company should continue monitoring and managing its working capital effectively to ensure optimal utilization and sustainable financial performance.