VF Corporation (VFC)

Cash ratio

Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
Cash and cash equivalents US$ in thousands 674,605 814,887 1,275,940 815,750 1,369,030
Short-term investments US$ in thousands 2,335 — 0 598,806 0
Total current liabilities US$ in thousands 3,456,980 3,545,770 3,315,400 2,210,480 3,023,880
Cash ratio 0.20 0.23 0.38 0.64 0.45

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($674,605K + $2,335K) ÷ $3,456,980K
= 0.20

The cash ratio of VF Corporation has been gradually decreasing over the past five years, indicating a trend of lower liquidity in the company's current assets. The cash ratio was 0.45 as of March 31, 2020, and has since declined to 0.20 as of March 31, 2024. This suggests that the company may have been relying less on cash and cash equivalents to cover its short-term liabilities.

A cash ratio of 0.20 as of March 31, 2024, implies that VF Corporation had $0.20 of cash and cash equivalents for every $1 of current liabilities. While a decreasing trend in the cash ratio may raise concerns about the company's ability to meet its short-term obligations using readily available cash, it is important to consider other factors such as the nature of VF Corporation's business, its industry norms, and overall financial health in conjunction with the cash ratio analysis.