VF Corporation (VFC)

Financial leverage ratio

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Total assets US$ in thousands 9,377,540 10,554,200 12,219,600 11,541,400 11,613,000 12,616,500 13,142,400 14,043,900 13,990,500 14,313,300 13,784,100 13,211,800 13,342,200 13,536,300 13,889,100 13,550,400 13,754,000 13,744,300 12,941,300 12,479,000
Total stockholders’ equity US$ in thousands 1,487,360 1,680,230 1,406,370 1,387,900 1,658,360 2,109,190 2,210,040 2,716,760 2,910,710 3,319,630 3,085,640 3,352,490 3,530,360 3,653,400 3,598,480 3,274,030 3,056,160 3,138,170 2,945,240 2,912,600
Financial leverage ratio 6.30 6.28 8.69 8.32 7.00 5.98 5.95 5.17 4.81 4.31 4.47 3.94 3.78 3.71 3.86 4.14 4.50 4.38 4.39 4.28

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 exhibited some fluctuations over the reported periods. The financial leverage ratio indicates the extent to which the company relies on debt to finance its operations and growth.

From June 30, 2020, to June 30, 2021, the ratio generally increased from 4.28 to 4.14, suggesting a decrease in the company's reliance on debt. This trend continued until September 30, 2021, where the ratio further decreased to 3.86, indicating a potential reduction in financial risk.

However, from December 31, 2021, to December 31, 2023, the financial leverage ratio steadily increased from 3.71 to 5.98. Such an increase may imply a greater proportion of debt in the company's capital structure, potentially indicating increased financial risk and leverage.

The ratio took a significant jump to 7.00 on March 31, 2024, and further increased to 8.69 by September 30, 2024. This steep rise in the ratio could indicate a substantial increase in debt relative to the company's equity, signaling heightened financial risk and leverage during these periods.

The last reported value on December 31, 2024, showed a decline in the financial leverage ratio to 6.28. This reduction may indicate that the company took steps to lower its reliance on debt or improve its equity position.

Notably, the data for March 31, 2025, is not available, creating a gap in the analysis of the trend. Overall, the fluctuations in VF Corporation's financial leverage ratio suggest varying degrees of reliance on debt over the reported periods, impacting the company's financial risk and capital structure.