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.