VF Corporation (VFC)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | -2.22% | 3.97% | 10.30% | 1.39% | 8.85% |
| Operating profit margin | -0.33% | 2.87% | 13.96% | 6.67% | 8.85% |
| Pretax margin | -2.29% | 0.38% | 14.48% | 5.59% | 7.41% |
| Net profit margin | -9.51% | 1.04% | 11.86% | 4.48% | 6.48% |
The profitability ratios of VF Corporation have shown fluctuations over the past five years. The gross profit margin, which indicates the percentage of revenue remaining after deducting the cost of goods sold, has experienced a downward trend, dropping from a high of 10.30% in 2022 to a low of -2.22% in 2024.
Similarly, the operating profit margin, reflecting the company's ability to generate profit from its core operations, has also shown variability. It decreased significantly from 13.96% in 2022 to -0.33% in 2024, indicating operational challenges.
The pretax margin, which represents the percentage of earnings before taxes out of total revenue, peaked at 14.48% in 2022 before declining to -2.29% in 2024. This suggests increased expenses or lower revenues impacting the company's profitability.
Lastly, the net profit margin, which reveals the proportion of revenue that translates to net income, has been inconsistent. After reaching 11.86% in 2022, the margin fell to -9.51% in 2024, signaling a significant decline in profitability.
Overall, the profitability ratios of VF Corporation indicate a concerning trend of decreasing margins, which may require further analysis to identify the underlying factors influencing the company's financial performance.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.29% | 2.34% | 12.23% | 4.42% | 8.33% |
| Return on assets (ROA) | -8.34% | 0.85% | 10.40% | 2.97% | 6.10% |
| Return on total capital | 0.18% | 2.53% | 22.60% | 7.37% | 14.63% |
| Return on equity (ROE) | -58.42% | 4.07% | 39.29% | 13.35% | 20.24% |
VF Corporation's profitability ratios have shown significant fluctuations over the past five years.
The Operating Return on Assets (Operating ROA) has seen a downward trend, decreasing from 12.23% in 2022 to -0.29% in 2024. This indicates that the company's operating profitability in relation to its total assets has deteriorated.
The Return on Assets (ROA) has also shown a similar pattern, dropping from 10.40% in 2022 to -8.34% in 2024. This indicates that VF Corporation's overall profitability relative to its total assets has weakened over the years.
The Return on Total Capital has fluctuated, reaching a high of 22.60% in 2022 and a low of 0.18% in 2024. This ratio measures the efficiency of the company in generating returns from both debt and equity capital.
The Return on Equity (ROE) has shown the most variability, plummeting from 39.29% in 2022 to -58.42% in 2024. This indicates a significant decline in VF Corporation's profitability relative to shareholders' equity.
Overall, VF Corporation's profitability ratios suggest a mixed performance, with declining profitability in recent years. Additional analysis and investigation would be necessary to determine the specific factors driving these fluctuations in profitability.