VF Corporation (VFC)

Cash ratio

Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021
Cash and cash equivalents US$ in thousands 429,382 674,605 814,887 1,275,940 815,750
Short-term investments US$ in thousands — 2,335 — 0 598,806
Total current liabilities US$ in thousands 2,697,850 3,456,980 3,545,770 3,315,400 2,210,480
Cash ratio 0.16 0.20 0.23 0.38 0.64

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($429,382K + $—K) ÷ $2,697,850K
= 0.16

The cash ratio of VF Corporation has been on a downward trend over the past five years, decreasing from 0.64 on March 31, 2021, to 0.16 on March 31, 2025. This indicates a declining ability of the company to cover its short-term liabilities solely with its cash and cash equivalents. A decreasing trend in the cash ratio may raise concerns about the company's liquidity position and ability to meet its short-term obligations. It is important for VF Corporation to closely monitor and manage its cash resources to ensure it has sufficient liquidity to weather potential financial challenges in the future.