VF Corporation (VFC)
Solvency ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 7.00 | 4.81 | 3.78 | 4.50 | 3.32 |
Based on the solvency ratios of VF Corporation over the past five years, we can see some interesting trends. The debt-to-assets ratio has fluctuated between 0.23 and 0.41, indicating that the company's level of debt relative to its total assets has varied over time, but generally, the company has maintained a manageable level of debt in relation to its assets.
The debt-to-capital ratio has shown a similar pattern, ranging from 0.44 to 0.74, suggesting that VF Corporation has been using a mix of debt and equity to finance its operations and investments, with slightly more reliance on debt in recent years.
The debt-to-equity ratio has exhibited more significant fluctuations, from 0.77 to 2.83, indicating varying levels of debt compared to equity in the company's capital structure. The higher ratios suggest a higher degree of financial leverage, which could imply higher financial risk.
Lastly, the financial leverage ratio, which reflects the extent to which the company relies on debt financing, has also varied over the years, ranging from 3.32 to 7.00. This indicates that VF Corporation has been leveraging its operations with debt to different extents, potentially amplifying returns but also increasing financial risk.
Overall, based on these solvency ratios, VF Corporation appears to have managed its debt levels reasonably well, but the fluctuations in some ratios suggest potential shifts in the company's capital structure and financial risk profile over the past five years. Further analysis and consideration of the company's overall financial health would be necessary to fully assess its solvency position.
Coverage ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.06 | 1.25 | 9.16 | 1.21 | 12.41 |
The interest coverage ratio for VF Corporation has shown significant fluctuations over the past five years. It dropped to a low of 0.05 in March 2024, indicating a significant decrease in the company's ability to cover its interest expenses with its operating income. This could raise concerns about the company's financial stability and its ability to meet its debt obligations.
In contrast, the interest coverage ratio was much healthier in the previous years, with values of 1.25, 13.41, 4.76, and 9.45 for the years ending in March 2023, 2022, 2021, and 2020, respectively. These higher ratios suggest that VF Corporation was better positioned to meet its interest payments with its operating profits during those years.
The significant decline in the interest coverage ratio in March 2024 compared to the previous years could indicate potential financial distress or a temporary setback for VF Corporation. It would be important for investors and analysts to closely monitor the company's financial health and debt management strategies in light of this concerning trend.