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 | ||
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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.
Peer comparison
Dec 31, 2024