VF Corporation (VFC)

Financial leverage ratio

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Total assets	US$ in thousands	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	11,133,300	10,814,300	11,270,400	10,402,000
Total stockholders’ equity	US$ in thousands	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	3,357,330	4,567,590	4,647,620	4,151,610
Financial leverage ratio		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	3.32	2.37	2.42	2.51

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 been showing an increasing trend over the past several quarters, indicating a rising level of leverage in the company's capital structure. The ratio has increased from 2.37 at the end of September 2019 to 7.00 at the end of March 2024.

This significant increase in the financial leverage ratio suggests that VF Corporation has been relying more on debt to finance its operations and growth initiatives. While leverage can amplify returns for shareholders when the company is performing well, it also exposes the company to greater financial risk, particularly in times of economic downturn or unfavorable business conditions.

Investors and stakeholders should closely monitor VF Corporation's leverage ratio and consider the associated risks when evaluating the company's financial health and sustainability in the long term. Additionally, management should carefully manage the company's debt levels to maintain a healthy balance between risk and return.