VF Corporation (VFC)
Financial leverage ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,613,000 | 13,990,500 | 13,342,200 | 13,754,000 | 11,133,300 |
| Total stockholders’ equity | US$ in thousands | 1,658,360 | 2,910,710 | 3,530,360 | 3,056,160 | 3,357,330 |
| Financial leverage ratio | 7.00 | 4.81 | 3.78 | 4.50 | 3.32 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,613,000K ÷ $1,658,360K
= 7.00
The financial leverage ratio of VF Corporation has fluctuated over the past five years, ranging from 3.32 in 2020 to 7.00 in 2024. This ratio measures the extent to which the company relies on debt to finance its operations. A higher financial leverage ratio indicates a higher level of debt relative to equity, suggesting a higher financial risk but potentially higher returns. In 2024, the financial leverage ratio of 7.00 indicates that VF Corporation has increased its reliance on debt compared to previous years, potentially signaling a more aggressive capital structure strategy. It is essential for investors and stakeholders to closely monitor changes in the financial leverage ratio to assess the company's financial risk and stability.
Peer comparison
Mar 31, 2024