VF Corporation (VFC)

Pretax margin

Mar 31, 2025 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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 129,704 -279,935 -542,145 -468,927 -233,685 -40,045 481,398 43,623 43,287 430,407 615,819 1,281,486 1,523,250 1,441,178 1,186,571 948,567 456,472 -22,268 130,861 398,625
Revenue (ttm) US$ in thousands 7,499,160 9,877,750 10,004,120 10,280,410 10,459,450 10,820,470 11,390,860 11,437,220 11,612,480 11,697,530 11,791,240 11,908,880 11,841,840 11,599,850 10,947,010 10,357,090 9,238,820 8,758,570 9,171,780 9,956,730
Pretax margin 1.73% -2.83% -5.42% -4.56% -2.23% -0.37% 4.23% 0.38% 0.37% 3.68% 5.22% 10.76% 12.86% 12.42% 10.84% 9.16% 4.94% -0.25% 1.43% 4.00%

March 31, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $129,704K ÷ $7,499,160K
= 1.73%

VF Corporation's pretax margin has displayed fluctuations over the periods provided. The trend shows a decline from a positive 4.00% in June 2020 to negative levels, reaching a low of -5.42% in September 2024. However, there was a notable recovery in the following periods, with the pretax margin improving to positive territory, ending at a healthy 1.73% in March 2025.

The pretax margin is an important measure of operational efficiency and profitability as it indicates the percentage of revenue that translates into pre-tax income. The fluctuations observed in VF Corporation's pretax margin suggest varying levels of cost management, pricing strategies, and overall business performance during the period under review. It is essential for the company to closely monitor and manage its cost structures, revenue streams, and operational efficiencies to maintain or improve its pretax margin in the future.