VF Corporation (VFC)

Current 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
Total current assets	US$ in thousands	5,021,480	6,458,860	4,349,130	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
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
Current ratio		1.56	1.30	0.99	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

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,021,480K ÷ $3,226,910K
= 1.56

The current ratio of VF Corporation has displayed some fluctuations over the past few years. The ratio was relatively stable around 3.00 in mid-2020, signifying a strong liquidity position. However, it started to decline gradually and fell below 2.00 by the end of 2020, indicating a reduction in the company's ability to cover its short-term obligations with its current assets.

Throughout 2021 and the first half of 2022, the current ratio continued to decrease, dropping below 1.50 by mid-2022. This downward trend suggests potential liquidity challenges for VF Corporation as its current assets may not be sufficient to meet its short-term liabilities.

There was a slight improvement in the ratio in the following quarters of 2022 and 2023, with the current ratio hovering around 1.45 to 1.50. Although this uptick indicates a better ability to cover short-term obligations, the ratio remained below the ideal level of 2.00, implying a less robust liquidity position for the company.

By the end of 2024, the current ratio dropped to 1.56, showing a slight increase from the previous quarter but still below the levels observed in earlier years. This suggests that VF Corporation may still face challenges in meeting its short-term obligations with its current assets, indicating a potential need to manage its liquidity more effectively in the future.