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.