VF Corporation (VFC)
Financial leverage ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,377,540 | 11,613,000 | 13,990,500 | 13,342,200 | 13,754,000 |
| Total stockholders’ equity | US$ in thousands | 1,487,360 | 1,658,360 | 2,910,710 | 3,530,360 | 3,056,160 |
| Financial leverage ratio | 6.30 | 7.00 | 4.81 | 3.78 | 4.50 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,377,540K ÷ $1,487,360K
= 6.30
The financial leverage ratio of VF Corporation has shown fluctuation over the past five years. In March 2021, the ratio stood at 4.50, indicating that the company had $4.50 of debt for every $1 of equity. By March 2022, the ratio improved slightly to 3.78, suggesting a reduced reliance on debt financing. However, in the following years, the ratio increased significantly to 4.81 in 2023, 7.00 in 2024, and 6.30 in 2025. These elevated ratios indicate a higher level of financial risk as the company has been using more debt to finance its operations, potentially increasing the pressure on profitability and cash flows to service the debt. It is essential for VF Corporation to carefully manage its debt levels to ensure financial stability and long-term sustainability.
Peer comparison
Mar 31, 2025