VF Corporation (VFC)

Financial leverage ratio

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 Mar 31, 2020
Total assets US$ in thousands 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 11,133,300
Total stockholders’ equity US$ in thousands 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 3,357,330
Financial leverage ratio 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 3.32

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,554,200K ÷ $1,680,230K
= 6.28

The financial leverage ratio of VF Corporation has shown an increasing trend over the past few years, indicating a growth in the company's reliance on debt to finance its operations.

From March 31, 2020, to December 31, 2022, the financial leverage ratio consistently increased from 3.32 to 4.31. This suggests that VF Corporation has been increasing its debt levels relative to its equity during this period.

There was a slight dip in the ratio in the first half of 2023, reaching 4.81 by March 31, but it began to rise steeply thereafter. By December 31, 2024, the financial leverage ratio had reached 6.28. This significant increase in the ratio indicates a substantial growth in the company's debt relative to its equity by the end of 2024.

The rising trend in the financial leverage ratio may signal increased financial risk for VF Corporation, as higher leverage can amplify both returns and losses. Investors and creditors may closely monitor this ratio to assess the company's ability to meet its debt obligations and maintain financial stability in the long run.