VF Corporation (VFC)

Liquidity ratios

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
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
Quick ratio 0.84 0.46 0.38 0.56 0.58 0.67 0.53 0.68 0.47 0.45 0.51 0.83 0.88 0.93 0.98 1.23 2.11 2.06 2.20 0.89
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

The current ratio of VF Corporation has fluctuated over the years, starting at a relatively high level of 1.66 in March 31, 2020, peaking at 3.65 in June 30, 2020, and then gradually declining to 0.99 by June 30, 2024. This decline indicates a potential weakening in the company's ability to meet its short-term obligations with its current assets.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, shows a decline from a high of 2.20 in June 30, 2020, to 0.38 by June 30, 2024. This suggests that VF Corporation may have faced challenges in quickly converting its most liquid assets into cash to meet its short-term liabilities.

The cash ratio of VF Corporation also shows a decreasing trend over the years, from a high of 1.66 in June 30, 2020, to 0.14 by June 30, 2024. This indicates that the company's cash and cash equivalents may not be sufficient to cover its current liabilities in the short term.

Overall, the decreasing trends in the current ratio, quick ratio, and cash ratio of VF Corporation suggest potential liquidity challenges that the company may need to address to ensure its ability to meet its short-term financial obligations effectively.

Additional liquidity measure

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 conversion cycle days 78.91 101.60 71.97 78.02 87.71 114.01 91.08 109.19 117.60 127.86 96.16 75.96 74.13 95.28 67.01 76.76 95.34 117.82 87.94 84.59

The cash conversion cycle for VF Corporation has varied over the analyzed periods. It measures the time it takes for the company to convert its investments in inventory and other resources into cash from sales, and then back into cash again through the collection process.

From the provided data, we can observe fluctuations in the cash conversion cycle of VF Corporation. For example, the cycle ranged from a low of 67.01 days on June 30, 2021, to a high of 127.86 days on September 30, 2022. These variations indicate changes in the efficiency of VF Corporation's working capital management.

Overall, the company experienced some volatility in its cash conversion cycle but generally maintained it at reasonable levels. A lower cash conversion cycle is generally favorable as it signifies that the company is able to swiftly convert its investments into cash. Conversely, a higher cash conversion cycle indicates a longer period to convert investments into cash, which may tie up capital and impact liquidity.

Analyzing the trend and magnitude of fluctuations in VF Corporation's cash conversion cycle can provide insights into its operational efficiency, inventory management, and collection practices. It is essential for the company to monitor and manage its cash conversion cycle effectively to optimize working capital and enhance overall financial performance.