VF Corporation (VFC)
Debt-to-capital ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
March 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,658,360K)
= 0.00
The debt-to-capital ratio of VF Corporation has been fluctuating over the past five years, reflecting the company's changing capital structure. In the latest fiscal year ending March 31, 2024, the ratio stood at 0.74, indicating that the company's debt represented 74% of its total capital. This represents an increase from the previous year when the ratio was 0.66.
Looking back, we can see a general upward trend in the debt-to-capital ratio since FY 2020 when it was at its lowest point of 0.44. This suggests that VF Corporation has been gradually taking on more debt relative to its total capital over the years. The peak ratio in FY 2022 at 0.56 was followed by a slight increase in FY 2023 before a more significant jump in FY 2024.
The increasing trend in the debt-to-capital ratio could indicate that VF Corporation has been relying more heavily on debt financing to support its operations, investments, or growth initiatives. This may raise concerns about the company's financial leverage and ability to service its debt obligations in the long term.
Overall, a higher debt-to-capital ratio suggests a higher level of financial risk for the company, as a larger portion of its capital structure is dependent on borrowed funds. It is important for investors and stakeholders to monitor this ratio closely to assess VF Corporation's financial health and risk profile.
Peer comparison
Mar 31, 2024