VF Corporation (VFC)

Cash conversion cycle

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Days of inventory on hand (DOH)	days	134.33	128.50	151.72	96.13	88.67
Days of sales outstanding (DSO)	days	50.75	44.56	50.61	45.24	51.28
Number of days of payables	days	65.19	59.44	61.96	38.15	38.68
Cash conversion cycle	days	119.90	113.61	140.38	103.23	101.27

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 134.33 + 50.75 – 65.19
= 119.90

The cash conversion cycle of VF Corporation has shown some fluctuation over the past five years.

As of March 31, 2021, the cash conversion cycle stood at 101.27 days, indicating that on average, it took the company around 101 days to convert its investments in inventory and other resources into cash received from sales.

By March 31, 2022, the cash conversion cycle had extended to 103.23 days, suggesting a slight increase in the amount of time it took for VF Corporation to convert its resources into cash.

The cash conversion cycle significantly increased to 140.38 days as of March 31, 2023, indicating a notable extension in the company's operating cycle. This could imply potential inefficiencies in managing inventory, receivables, and payables during this period.

However, by March 31, 2024, there was a decrease in the cash conversion cycle to 113.61 days, indicating an improvement in the efficiency of VF Corporation in converting its resources into cash compared to the previous year.

As of the most recent data point on March 31, 2025, the cash conversion cycle stood at 119.90 days, showing a slight increase compared to the previous year.

In general, the fluctuation in VF Corporation's cash conversion cycle over the five-year period suggests varying levels of effectiveness in managing its working capital and operational efficiency. It is essential for the company to closely monitor and optimize its cash conversion cycle to ensure its resources are efficiently utilized to generate cash flows.