VF Corporation (VFC)

Quick 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
Cash	US$ in thousands	674,605	988,006	498,912	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	540,029	469,912	560,882
Short-term investments	US$ in thousands	—	1,737	—	—	—	—	—	0	0	0	0	598,806	598,806	599,403	800,000	700,000	0	0	0	0
Receivables	US$ in thousands	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	1,641,760	1,976,150	1,306,270
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
Quick ratio		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	1.11	1.02	0.96

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($674,605K + $—K + $1,273,960K) ÷ $3,456,980K
= 0.56

The quick ratio of VF Corporation has shown fluctuations over the past few quarters, indicating changes in the company's ability to quickly meet its short-term obligations with its most liquid assets. The ratio has ranged from a low of 0.45 to a high of 2.20 during the analysis period.

In general, a quick ratio below 1.0 may suggest potential liquidity issues as the company may struggle to cover its current liabilities with its liquid assets. VF Corporation experienced quick ratios below 1.0 in several quarters, including Jun 30, 2022, Mar 31, 2022, Jun 30, 2021, Mar 31, 2021, and Mar 31, 2020.

Conversely, quick ratios above 1.0 indicate a stronger ability to cover short-term liabilities with liquid assets. The company notably achieved quick ratios above 1.0 in Dec 31, 2020, Sep 30, 2020, Jun 30, 2020, and Dec 31, 2019, reaching peaks of 2.11, 2.06, and 2.20 during this analysis period.

Overall, the analysis of VF Corporation's quick ratio indicates variations in the company's short-term liquidity position, with both strengths and potential areas of concern identified throughout the quarters. Management may need to closely monitor and manage the composition of current assets to ensure the company maintains an optimal level of liquidity to meet its obligations in a timely manner.