VF Corporation (VFC)

Current 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
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
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
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

March 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $—K ÷ $—K
= —

The current ratio is a liquidity ratio that measures a company's ability to meet its short-term obligations with its current assets. For VF Corporation, the current ratio has shown a declining trend over the quarters, starting at 3.65 on June 30, 2020, and decreasing to 0.99 on June 30, 2024. This decline indicates a potential weakening in the company's short-term liquidity position.

A current ratio above 1 indicates that a company has more current assets than current liabilities, which is generally considered a favorable position. However, as VF Corporation's current ratio has dropped below 1 in recent quarters, it suggests that the company may be facing challenges in meeting its short-term obligations with its current assets alone.

While a declining current ratio is a cause for concern, it is important to consider other factors such as the nature of VF Corporation's business, industry trends, and the company's overall financial health when interpreting this ratio. An in-depth analysis of the company's financial statements and other relevant information would be necessary to gain a complete understanding of its liquidity position.