VF Corporation (VFC)

Quick 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	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
Receivables	US$ in thousands	1,343,290	1,820,200	1,055,570	1,273,960	1,314,140	1,889,800	1,214,220	1,610,300	1,564,960	1,834,600	1,249,710	1,467,840	1,495,860	1,787,330	1,138,810	1,298,020	1,411,560	1,606,480	934,984	1,308,050
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
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

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,369,380K + $—K + $1,343,290K) ÷ $3,226,910K
= 0.84

The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered acceptable, as it indicates that the company can cover its short-term liabilities without relying on inventory sales.

Based on the data provided for VF Corporation, we observe fluctuations in the quick ratio over the years. The quick ratio was highest in June 30, 2020, at 2.20, indicating a strong ability to cover short-term obligations with liquid assets. This positive trend continued through the end of 2020, with ratios above 2.

However, starting from March 31, 2021, the quick ratio began to decline, falling below 1 in the subsequent quarters. The ratio dropped to its lowest point in June 30, 2024, at 0.38, suggesting a potential liquidity issue during that period.

It's important to note that a declining quick ratio may raise concerns about the company's ability to meet its short-term obligations without relying on inventory liquidation or external financing. Further analysis of VF Corporation's financial statements and liquidity position would be necessary to understand the reasons behind the fluctuating quick ratio and assess the company's overall financial health.