VF Corporation (VFC)

Cash ratio

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 Mar 31, 2020
Cash and cash equivalents US$ in thousands 1,369,380 492,164 637,420 656,376 975,937 484,825 806,529 814,887 571,347 552,811 528,029 1,275,940 1,333,840 1,360,140 1,274,930 815,750 3,254,240 1,877,400 2,145,110 1,369,030
Short-term investments US$ in thousands — — 1,690 18,229 12,069 14,087 — — — — 0 0 0 0 598,806 598,806 599,403 800,000 700,000 0
Total current liabilities US$ in thousands 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 3,023,880
Cash ratio 0.42 0.10 0.14 0.20 0.25 0.14 0.21 0.23 0.13 0.10 0.15 0.38 0.41 0.40 0.61 0.64 1.54 1.28 1.66 0.45

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,369,380K + $—K) ÷ $3,226,910K
= 0.42

The cash ratio of VF Corporation has shown fluctuations over the reporting periods. The cash ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio is generally considered favorable as it suggests the company has a strong liquidity position.

Examining the data provided:
- The cash ratio increased steadily from March 31, 2020 to December 31, 2021, indicating an improvement in VF Corporation's liquidity position during this period.
- However, starting from March 31, 2022, the cash ratio began to decline, reaching its lowest point on September 30, 2024.
- The cash ratio then showed a slight increase by December 31, 2024, but it still remained lower compared to the previous highs.

The declining trend in the cash ratio from March 2022 to September 2024 may raise concerns about VF Corporation's liquidity position and its ability to cover short-term obligations solely with cash and cash equivalents.

It would be important for investors and stakeholders to monitor VF Corporation's cash management practices and overall liquidity position in the future reporting periods to ensure the company can meet its short-term obligations effectively.