VF Corporation (VFC)
Return on total capital
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 15,589 | 217,912 | 1,249,700 | 164,533 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,487,360 | 1,658,360 | 2,910,710 | 3,530,360 | 3,056,160 |
| Return on total capital | 0.00% | 0.94% | 7.49% | 35.40% | 5.38% |
March 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,487,360K)
= 0.00%
The return on total capital for VF Corporation has exhibited significant fluctuations over the past five years. In March 2021, the return on total capital was 5.38%, indicating that for every dollar of capital employed, the company generated a return of 5.38 cents. This figure saw a substantial increase to 35.40% by March 2022, suggesting a notable improvement in capital efficiency and profitability.
However, in the subsequent years, the return on total capital declined significantly. By March 2023, the return dropped to 7.49%, and further decreased to 0.94% by March 2024. Notably, in March 2025, the return on total capital reached 0.00%, implying that the company did not generate any return on the total capital employed during that period.
These fluctuations in the return on total capital indicate varying levels of efficiency in utilizing the company's total capital to generate profits. The sharp decline in the latter years raises concerns about the company's ability to effectively deploy its capital to generate returns for its shareholders. Further analysis of the factors influencing these fluctuations would be necessary to assess the company's financial performance and sustainability.
Peer comparison
Mar 31, 2025