VF Corporation (VFC)

Operating return on assets (Operating ROA)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Operating income	US$ in thousands	-34,062	327,693	1,632,200	607,631	927,805
Total assets	US$ in thousands	11,613,000	13,990,500	13,342,200	13,754,000	11,133,300
Operating ROA		-0.29%	2.34%	12.23%	4.42%	8.33%

March 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-34,062K ÷ $11,613,000K
= -0.29%

Operating return on assets (Operating ROA) measures a company's efficiency in generating operating profits from its assets. Over the past five years, VF Corporation's Operating ROA has fluctuated significantly. In fiscal year 2020, VF Corporation achieved a relatively high Operating ROA of 8.33%, indicating a strong performance in generating operating profits relative to its assets. However, this figure decreased in fiscal year 2021 to 4.42%, reflecting a decline in efficiency in generating profits from assets.

Subsequently, in fiscal year 2022, VF Corporation experienced a significant improvement in Operating ROA to 12.23%, signaling a substantial increase in profit generation efficiency from assets. However, this high was not sustained, as the Operating ROA sharply declined to 2.34% in fiscal year 2023. Furthermore, the trend took a negative turn in fiscal year 2024, with an Operating ROA of -0.29%, indicating that the company faced challenges in generating operating profits relative to its assets during that period.

Overall, the fluctuations in VF Corporation's Operating ROA over the five-year period suggest varying levels of efficiency in utilizing assets to generate operating profits. It is essential for VF Corporation to closely monitor and manage its asset utilization to ensure sustainable profitability and long-term success.