VF Corporation (VFC)

Cash conversion cycle

Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
Days of inventory on hand (DOH) days 128.50 151.72 96.13 88.67 100.69
Days of sales outstanding (DSO) days 44.56 50.61 45.24 51.28 45.52
Number of days of payables days 59.44 61.96 38.15 38.68 31.67
Cash conversion cycle days 113.61 140.38 103.23 101.27 114.53

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 128.50 + 44.56 – 59.44
= 113.61

The cash conversion cycle of VF Corporation has fluctuated over the past five years. In the latest fiscal year ending on March 31, 2024, the company's cash conversion cycle decreased to 78.94 days compared to the previous year's 96.61 days. This indicates that VF Corporation was able to convert its investments in inventory back to cash more efficiently in the most recent period.

However, when compared to two years ago, the cash conversion cycle was slightly higher in 2024 (78.94 days) than in 2022 (75.58 days). This suggests that there might have been some challenges in managing the company's inventory turnover or accounts receivable collection during the latest fiscal year.

Overall, the trend in VF Corporation's cash conversion cycle shows some variability, with fluctuations observed in the efficiency of converting inventory and receivables into cash over the past five years. It would be important for the company to continue monitoring and improving its cash conversion cycle to ensure optimal liquidity management and operational efficiency.