VF Corporation (VFC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.40 | 0.00 | 0.00 | 0.00 | 0.41 | 0.00 | 0.00 | 0.00 | 0.34 | 0.00 | 0.00 | 0.00 | 0.41 | 0.00 | 0.00 | 0.00 | 0.23 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.74 | 0.00 | 0.00 | 0.00 | 0.66 | 0.00 | 0.00 | 0.00 | 0.56 | 0.00 | 0.00 | 0.00 | 0.65 | 0.00 | 0.00 | 0.00 | 0.44 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 2.83 | 0.00 | 0.00 | 0.00 | 1.96 | 0.00 | 0.00 | 0.00 | 1.29 | 0.00 | 0.00 | 0.00 | 1.86 | 0.00 | 0.00 | 0.00 | 0.77 |
| 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 |
The solvency ratios of VF Corporation provide insights into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio gradually increased from 0.23 in March 2020 to 0.40 in March 2024, indicating a higher proportion of assets financed by debt over the period.
The debt-to-capital ratio also saw a rising trend, climbing from 0.44 in March 2020 to 0.74 in March 2024, showing an increasing reliance on debt in the company's capital structure.
Similarly, the debt-to-equity ratio displayed an upward trajectory from 0.77 in March 2020 to 2.83 in March 2024. This indicates a significant increase in the level of debt relative to equity financing.
The financial leverage ratio, which reflects the proportion of assets financed by debt compared to equity, surged from 3.32 in March 2020 to 8.32 in June 2024. This signifies a substantial shift towards higher leverage in the company's capital structure, which could potentially increase financial risk.
Overall, the solvency ratios of VF Corporation suggest a trend of increasing reliance on debt for financing, which may raise concerns about the company's long-term financial stability and ability to meet its debt obligations in the future.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -0.42 | -1.33 | -0.89 | 0.05 | 0.83 | 3.16 | 1.22 | 1.25 | 3.81 | 5.64 | 10.56 | 13.41 | 12.48 | 10.81 | 9.41 | 5.05 | 1.38 | 2.35 | 4.83 | 10.08 |
VF Corporation's interest coverage ratio, a key financial metric used to evaluate the company's ability to meet its interest obligations, has shown fluctuations over the past few years.
The interest coverage ratio was relatively healthy in the earlier periods, standing at 10.08 as of March 31, 2020, indicating that VF Corporation had sufficient earnings to cover its interest expenses more than 10 times over. However, this ratio declined to 1.38 by December 31, 2020, suggesting a notable decrease in the company's ability to cover its interest payments.
Subsequently, there was some improvement in the interest coverage ratio, with a slight increase to 5.05 by March 31, 2021, and further enhancements reaching a peak of 13.41 as of March 31, 2022. This improvement indicates a recovery in VF Corporation's ability to cover its interest obligations comfortably.
However, the interest coverage ratio started to decline again from June 30, 2022, where it was reported at 10.56, and continued to decrease in the following periods, reaching negative values by December 31, 2024. The negative interest coverage ratios from June 30, 2024, to December 31, 2024, suggest that VF Corporation's earnings were insufficient to cover its interest expenses during these periods.
Overall, the fluctuating trend in VF Corporation's interest coverage ratio indicates periods of strength and weakness in the company's ability to meet its interest obligations. Investors and stakeholders should closely monitor this ratio to assess the company's financial health and stability.