VF Corporation (VFC)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 53.49% | 52.01% | 52.50% | 54.51% | 52.69% |
| Operating profit margin | 4.13% | -0.33% | 15.48% | 13.78% | 6.58% |
| Pretax margin | 1.53% | -2.24% | 0.37% | 12.86% | 4.94% |
| Net profit margin | -2.00% | -9.27% | 1.02% | 11.71% | 4.41% |
The Gross Profit Margin for VF Corporation has shown a positive trend from 52.69% in March 2021 to 53.49% in March 2025, indicating the company's ability to efficiently manage production costs and generate profit from its core operations.
The Operating Profit Margin witnessed significant fluctuations during the period, with a notable increase from 6.58% in March 2021 to 15.48% in March 2023, followed by a decline to -0.33% in March 2024 and a slight recovery to 4.13% in March 2025. These fluctuations highlight the company's varying levels of effectiveness in controlling operating expenses and generating profits from its regular operations.
The Pretax Margin ratio also exhibited fluctuations, starting at 4.94% in March 2021, reaching a peak of 12.86% in March 2022, and then declining sharply to -2.24% in March 2024, before showing a slight recovery to 1.53% in March 2025. These changes reflect the impact of taxes and non-operating expenses on VF Corporation's overall profitability.
The Net Profit Margin for VF Corporation experienced fluctuations as well, with a positive trend from 4.41% in March 2021 to 11.71% in March 2022, followed by a significant decline to -9.27% in March 2024, and a partial recovery to -2.00% in March 2025. These fluctuations indicate the company's varying levels of profitability after accounting for all expenses, including taxes and interest payments.
In conclusion, VF Corporation's profitability ratios demonstrate a mixed performance over the analyzed period, reflecting fluctuations in its ability to generate profits at different levels of operations and after various expenses are taken into account.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.19% | -0.29% | 12.85% | 12.23% | 4.42% |
| Return on assets (ROA) | -2.02% | -8.34% | 0.85% | 10.40% | 2.97% |
| Return on total capital | 0.00% | 0.94% | 7.49% | 35.40% | 5.38% |
| Return on equity (ROE) | -12.76% | -58.42% | 4.07% | 39.29% | 13.35% |
VF Corporation's profitability ratios have shown significant fluctuations over the past five years.
- The Operating return on assets (Operating ROA) has varied from a low of -0.29% on March 31, 2024, to a high of 12.85% on March 31, 2023. This ratio indicates the company's ability to generate profit from its operational assets, and the improved performance in 2023 reflects better operational efficiency.
- The Return on assets (ROA) has also been volatile, ranging from -8.34% on March 31, 2024, to 10.40% on March 31, 2022. This ratio measures the overall profitability of the company's assets, and the negative values in 2024 and 2025 suggest challenges in generating profits relative to the total assets.
- The Return on total capital has generally been low, with the highest value of 35.40% on March 31, 2022. This ratio evaluates the return generated from all sources of capital and indicates the company's efficiency in utilizing both debt and equity to generate profits.
- The Return on equity (ROE) has displayed wide variations, with the highest value of 39.29% on March 31, 2022, and the lowest of -58.42% on March 31, 2024. This ratio reflects the return earned on shareholders' equity and highlights the company's ability to generate profits for its owners.
Overall, while VF Corporation has shown improvements in certain profitability ratios over the years, the fluctuations indicate a need for careful financial management and strategic planning to sustain and enhance profitability in the future.