VF Corporation (VFC)

Cash ratio

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Cash and cash equivalents US$ in thousands 429,382 1,369,380 492,164 637,420 676,826 988,006 500,109 806,529 814,887 571,347 552,811 528,029 1,275,940 1,333,840 1,360,140 1,274,930 815,750 3,254,240 1,877,400 2,145,110
Short-term investments US$ in thousands — — — 1,690 2,335 1,737 — — — — — 0 0 598,806 0 598,806 598,806 599,403 800,000 700,000
Total current liabilities US$ in thousands 2,697,850 3,226,910 4,982,430 4,408,970 3,456,980 3,997,280 3,544,830 3,816,440 3,545,770 4,546,230 5,345,990 3,464,000 3,315,400 3,223,880 3,384,360 3,071,450 2,210,480 2,498,020 2,084,530 1,715,460
Cash ratio 0.16 0.42 0.10 0.14 0.20 0.25 0.14 0.21 0.23 0.13 0.10 0.15 0.38 0.60 0.40 0.61 0.64 1.54 1.28 1.66

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, a measure of its ability to cover short-term obligations with cash and cash equivalents, has fluctuated over the period from June 30, 2020, to March 31, 2025. The ratio started at a healthy level of 1.66 on June 30, 2020, indicating a strong liquidity position. However, it gradually declined in subsequent quarters, with notable decreases on March 31, 2021 (0.64) and September 30, 2021 (0.40), possibly suggesting increased utilization of cash for operations or investments.

Although there were slight improvements in the ratio in some quarters, such as December 31, 2021 (0.60) and December 31, 2023 (0.25), the overall trend indicated a decreasing ability to cover short-term liabilities with cash alone. The ratio hit its lowest point of 0.10 on September 30, 2022, indicating potential liquidity challenges or a need to manage cash more efficiently. Subsequently, the ratio showed some recovery but remained relatively low, reaching 0.42 on December 31, 2024.

The absence of data for March 31, 2025, makes it difficult to provide a complete picture of the current cash ratio. Overall, the fluctuating cash ratio of VF Corporation highlights the importance of monitoring liquidity levels and managing cash effectively to ensure the company can meet its short-term obligations.