VF Corporation (VFC)
Return on total capital
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 15,589 | 217,912 | 1,249,700 | 164,533 | 895,609 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,658,360 | 2,910,710 | 3,530,360 | 3,056,160 | 3,357,330 |
| Return on total capital | 0.94% | 7.49% | 35.40% | 5.38% | 26.68% |
March 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $15,589K ÷ ($—K + $1,658,360K)
= 0.94%
The return on total capital for VF Corporation has fluctuated significantly over the past five years. In March 2022, the return on total capital was exceptionally high at 22.60%, indicating that the company was generating a substantial return relative to the total capital invested. However, in the following years, the return on total capital decreased significantly. In March 2023, the return dropped to 2.53%, which was a sharp decline from the previous year. The return on total capital further decreased to 0.18% in March 2024, indicating a continued decrease in the company's ability to generate returns on its total capital. Overall, the trend in the return on total capital suggests that VF Corporation may be facing challenges in efficiently utilizing its capital to generate profits.
Peer comparison
Mar 31, 2024