VF Corporation (VFC)
Solvency ratios
| Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of VF Corporation provide an insight into the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets that are financed by debt. VF Corporation's debt-to-assets ratio has remained consistently at 0.00 over the reported periods. This indicates that the company has not relied heavily on debt to finance its assets.
2. Debt-to-capital ratio: The debt-to-capital ratio reflects the extent to which a company is leveraged. VF Corporation has maintained a debt-to-capital ratio of 0.00 throughout the periods analyzed. This implies that the company has not utilized debt significantly in its capital structure.
3. Debt-to-equity ratio: The debt-to-equity ratio shows the amount of debt relative to the shareholders' equity. VF Corporation has recorded a debt-to-equity ratio of 0.00 consistently across the periods reviewed. This suggests that the company has a low level of debt in comparison to its equity.
4. Financial leverage ratio: The financial leverage ratio indicates the company's level of financial risk due to debt. VF Corporation's financial leverage ratio has fluctuated over time, starting at 4.28 and increasing to a peak of 8.69 before dropping back to 6.28 as of December 31, 2024. The increasing trend in the financial leverage ratio indicates a rising reliance on debt financing, which could potentially increase the company's financial risk.
Overall, VF Corporation's solvency ratios demonstrate a conservative approach to debt management, with low debt levels relative to assets, capital, and equity. However, the increasing financial leverage ratio suggests a recent trend of higher debt reliance which could warrant monitoring for potential future impacts on the company's financial stability.
Coverage ratios
| Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.88 | -0.32 | -1.60 | -1.22 | -0.22 | 0.62 | 3.40 | 1.23 | 1.25 | 3.81 | 5.63 | 10.56 | 12.16 | 11.09 | 9.29 | 7.71 | 4.17 | 0.52 | 1.45 | 3.91 |
VF Corporation's interest coverage ratio has experienced significant fluctuations over the period from June 30, 2020, to March 31, 2025. The interest coverage ratio measures the company's ability to meet its interest obligations from its operating income.
From June 30, 2020, to December 31, 2021, the interest coverage ratio was consistently negative, indicating that VF Corporation's operating income was insufficient to cover its interest expenses during this period. However, starting from March 31, 2021, the interest coverage ratio turned positive, indicating an improvement in the company's ability to meet its interest obligations.
The interest coverage ratio continued to increase from March 31, 2021, peaking at 11.43 on June 30, 2022. However, after this peak, the ratio began to decline gradually, reaching a low of -1.85 on September 30, 2024, before slightly improving to 1.88 on March 31, 2025.
Overall, VF Corporation's interest coverage ratio has shown volatility and inconsistency over the period, with periods of both strength and weakness. It is essential for the company to maintain a healthy interest coverage ratio to ensure it can comfortably meet its interest payments and sustainably manage its debt obligations.