VF Corporation (VFC)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	62.86	79.42	89.55	95.50	97.57	104.71	112.03	101.90	49.99	46.09	54.38	46.73	43.81	59.20	76.12	69.31	57.00	56.88	67.73	56.00
Days of sales outstanding (DSO)	days	45.66	45.43	61.90	39.52	51.46	49.51	57.49	38.77	45.81	48.09	60.75	40.82	52.06	58.83	65.58	35.87	45.52	55.78	68.23	45.88
Number of days of payables	days	29.08	36.04	35.84	43.94	39.85	36.62	41.65	44.51	19.84	20.04	19.84	20.54	19.11	22.69	23.88	17.24	17.93	17.67	20.58	20.58
Cash conversion cycle	days	79.44	88.81	115.61	91.08	109.19	117.60	127.86	96.16	75.96	74.13	95.28	67.01	76.76	95.34	117.82	87.94	84.59	94.98	115.38	81.30

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 62.86 + 45.66 – 29.08
= 79.44

The cash conversion cycle for VF Corporation has exhibited fluctuations over the past several quarters. The company's cash conversion cycle represents the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales.

In the most recent quarter ending March 31, 2024, VF Corporation's cash conversion cycle stood at 79.44 days, showcasing an improvement compared to the previous quarter. This may indicate that the company is managing its inventory and accounts receivable effectively, leading to a quicker conversion of these assets into cash.

Looking back over the past few quarters, the cash conversion cycle has shown variability, with some periods experiencing longer cycles, such as in September 2022 and December 2022, where the cycle exceeded 127 and 117 days, respectively. Conversely, there have been periods, like in December 2021 and June 2021, where the cycle was notably shorter, indicating efficient management of working capital.

Analyzing these trends can provide insights into VF Corporation's operational efficiency and effectiveness in managing its cash flows and working capital. It is essential for the company to strive for a balance in its cash conversion cycle to ensure optimal utilization of resources and maintain healthy cash flow levels.