VF Corporation (VFC)
Return on total capital
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -88,030 | -311,799 | -221,477 | 11,351 | 196,144 | 704,182 | 240,681 | 217,677 | 583,891 | 749,153 | 1,415,982 | 1,830,391 | 1,781,998 | 1,547,293 | 1,299,688 | 668,539 | 256,981 | 356,417 | 585,031 | 927,805 |
| Long-term debt | US$ in thousands | — | — | — | 4,687,110 | — | — | — | 5,694,730 | — | — | — | 4,567,020 | — | — | — | 5,690,860 | — | — | — | 2,585,510 |
| Total stockholders’ equity | US$ in thousands | 1,680,230 | 1,406,370 | 1,387,900 | 1,658,360 | 2,109,190 | 2,210,040 | 2,716,760 | 2,910,710 | 3,319,630 | 3,085,640 | 3,352,490 | 3,530,360 | 3,653,400 | 3,598,480 | 3,274,030 | 3,056,160 | 3,138,170 | 2,945,240 | 2,912,600 | 3,357,330 |
| Return on total capital | -5.24% | -22.17% | -15.96% | 0.18% | 9.30% | 31.86% | 8.86% | 2.53% | 17.59% | 24.28% | 42.24% | 22.60% | 48.78% | 43.00% | 39.70% | 7.64% | 8.19% | 12.10% | 20.09% | 15.61% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-88,030K ÷ ($—K + $1,680,230K)
= -5.24%
The return on total capital for VF Corporation has shown significant fluctuations over the past few quarters. From March 2020 to December 2021, the return on total capital exhibited a generally increasing trend, reaching a peak of 48.78% in December 2021. This indicates that the company was effectively generating returns relative to the total capital invested during this period.
However, starting from March 2022, the return on total capital started to decline and became more volatile, with values ranging from 0.18% to -22.17% by December 2024. This downward trend suggests that the company may have faced challenges in efficiently utilizing its total capital to generate returns during this period.
The sharp decrease in the return on total capital from the second half of 2023 to the end of 2024 may indicate potential difficulties in the company's operations or capital allocation strategies. It would be important for VF Corporation to analyze the underlying reasons for this decline and take corrective actions to improve its return on total capital in the future.
Peer comparison
Dec 31, 2024