VF Corporation (VFC)

Interest coverage

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	—	15,589	217,912	1,249,700	164,533
Interest expense	US$ in thousands	174,136	245,036	174,390	136,469	135,655
Interest coverage		0.00	0.06	1.25	9.16	1.21

March 31, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $174,136K
= 0.00

The interest coverage ratio for VF Corporation has shown significant fluctuations over the years based on the provided data.

As of March 31, 2021, the interest coverage ratio was 1.21, indicating that the company's operating income was just enough to cover its interest expenses.

By March 31, 2022, the interest coverage ratio improved significantly to 9.16, suggesting a strong increase in the company's ability to cover its interest payments comfortably.

However, by March 31, 2023, the interest coverage ratio dropped to 1.25, indicating a slight decline in the company's ability to cover its interest expenses compared to the previous year.

The most concerning trend can be seen by March 31, 2024, where the interest coverage ratio plummeted to 0.06, indicating a significant deterioration in the company's ability to cover its interest expenses.

Finally, as of March 31, 2025, the interest coverage ratio reached 0.00, which implies that the company's operating income was insufficient to cover its interest payments.

Overall, the trend in VF Corporation's interest coverage ratio shows a mix of improvement and deterioration over the years, with a concerning drop in recent years that may raise potential liquidity and solvency issues for the company. This indicates a need for closer monitoring and potential financial restructuring to enhance the company's financial health in the future.