VF Corporation (VFC)

Current ratio

		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
Total current assets	US$ in thousands	4,226,950	4,935,930	5,243,560	5,213,560	5,152,710	5,243,980	5,688,240	4,611,710	4,588,080	4,600,650	4,969,870	4,564,140	4,785,870	7,285,220	6,680,210	6,261,140	5,027,020	4,155,700	4,775,210	3,990,860
Total current liabilities	US$ in thousands	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	1,962,090	2,404,340	1,947,140
Current ratio		1.22	1.23	1.48	1.37	1.45	1.15	1.06	1.33	1.38	1.43	1.47	1.49	2.17	2.92	3.20	3.65	1.66	2.12	1.99	2.05

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,226,950K ÷ $3,456,980K
= 1.22

The current ratio of VF Corporation has shown fluctuations over the past few quarters, ranging from a low of 1.06 to a high of 3.65. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is considered a positive sign for creditors and investors.

In recent quarters, VF Corporation's current ratio has generally been above 1, indicating that the company has sufficient current assets to meet its short-term obligations. The significant increase in the current ratio from the end of 2020 to the first quarter of 2021, where it reached over 3, suggests a substantial increase in current assets compared to current liabilities during that period.

The decline in the current ratio towards the end of 2021 and throughout 2022 may signify a shift in the company's liquidity position, potentially due to changes in asset and liability composition. However, the current ratio remained above 1, indicating overall adequate liquidity to cover short-term obligations.

It is essential for VF Corporation to maintain a healthy current ratio to ensure its ability to meet short-term financial commitments without facing liquidity issues. Analyzing the trend of the current ratio over an extended period can provide insights into the company's liquidity management and financial health.