VF Corporation (VFC)
Solvency ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| 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 | 6.30 | 7.00 | 4.81 | 3.78 | 4.50 |
Based on the data provided for VF Corporation, the solvency ratios reflect a very strong financial position with minimal debt-related risks.
1. Debt-to-Assets Ratio: The debt-to-assets ratio for VF Corporation has consistently been reported as 0.00 across the years from 2021 to 2025. This indicates that the company has no debt relative to its total assets, highlighting a conservative approach toward debt financing.
2. Debt-to-Capital Ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio for VF Corporation has also been consistently reported as 0.00 from 2021 to 2025. This ratio compares the total debt to the total capital (debt and equity) of the company, further emphasizing the company's minimal reliance on debt.
3. Debt-to-Equity Ratio: The debt-to-equity ratio for VF Corporation has also consistently been reported as 0.00 across the years from 2021 to 2025. This ratio compares the total debt to the total equity of the company, reaffirming the company's strong financial structure supported mainly by equity.
4. Financial Leverage Ratio: The financial leverage ratio for VF Corporation has shown some fluctuations over the years, starting at 4.50 in 2021 and decreasing to 3.78 in 2022. However, it then increased to 4.81 in 2023 before experiencing a notable jump to 7.00 in 2024 and slightly decreasing to 6.30 in 2025. While these fluctuations indicate changes in the company's use of debt to finance its operations, the overall trend suggests a moderate level of financial leverage compared to equity.
Overall, VF Corporation's solvency ratios demonstrate a robust financial position with a clear focus on maintaining low debt levels and a strong equity base. This financial stability is vital for the company's long-term growth and resilience in the face of economic challenges.
Coverage ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 0.06 | 1.25 | 9.16 | 1.21 |
The interest coverage ratio for VF Corporation has experienced significant fluctuations over the past five years. In March 2021, the interest coverage was relatively low at 1.21, indicating that the company's ability to cover interest expenses with earnings before interest and taxes was limited.
However, there was a notable improvement in March 2022, with the interest coverage ratio increasing to 9.16, reflecting a stronger ability to meet interest obligations from operating profits. Subsequently, in March 2023, the ratio decreased slightly to 1.25, indicating a slight decline in VF Corporation's ability to cover interest expenses.
March 31, 2024, saw a sharp decrease in the interest coverage to a very low 0.06, signaling a significant strain on the company's financial health in meeting interest payments with operating earnings. The following year, March 31, 2025, the interest coverage ratio dropped to 0.00, suggesting that VF Corporation's earnings were insufficient to cover its interest expenses, potentially raising concerns about the company's financial stability.
Overall, the trend in VF Corporation's interest coverage ratio shows volatility and inconsistency in its ability to cover interest expenses over the past five years, reflecting potential financial challenges and the importance of monitoring the company's financial performance closely.