VF Corporation (VFC)
Debt-to-equity ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 | 1,658,360 | 2,910,710 | 3,530,360 | 3,056,160 | 3,357,330 |
| Debt-to-equity ratio | 2.83 | 1.96 | 1.29 | 1.86 | 0.77 |
March 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,687,110K ÷ $1,658,360K
= 2.83
The debt-to-equity ratio of VF Corporation has shown fluctuations over the past five years, ranging from 0.77 in 2020 to 2.83 in 2024. In 2020, the company had a lower debt-to-equity ratio, indicating a conservative approach towards leveraging. This ratio increased significantly in 2024 to 2.83, suggesting a higher proportion of debt relative to equity in the company's capital structure.
The gradual increase in the debt-to-equity ratio from 2020 to 2024 may indicate a shift towards using more debt financing to support growth or operations. A higher debt-to-equity ratio can be indicative of increased financial risk and may signal a heavier reliance on borrowing to fund operations or investments.
Overall, the trend in VF Corporation's debt-to-equity ratio reflects changes in the company's capital structure and financing decisions over the years, highlighting the importance of monitoring leverage levels for assessing financial health and risk management.
Peer comparison
Mar 31, 2024