The business behind the dividend
| Measure | VFC | Median | Formula |
|---|---|---|---|
| Return on equity | 13.8% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 10.7% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $420.74m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $556.57m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 6.0% | 14.3% | Operating income ÷ revenue |
| Net margin | 2.7% | 10.1% | Net income ÷ revenue |
| Debt to equity | 1.90x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 3.46x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 1.84x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 1.93x | 1.88x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 2.63x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -4.5% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 13.8% | -12.8% | -58.4% | 4.1% | 39.3% | 13.3% | 20.2% | 29.3% | 16.5% | 21.7% | 13.8% |
| Return on capital employed | 10.7% | 5.6% | -2.0% | 10.5% | 19.0% | 6.9% | 15.6% | 16.9% | 15.0% | 20.2% | 10.7% |
| Operating margin | 6.0% | 3.2% | -1.5% | 9.0% | 13.8% | 6.6% | 8.8% | 11.6% | 10.5% | 13.2% | 8.8% |
| Net margin | 2.7% | -2.0% | -9.8% | 1.1% | 11.7% | 4.4% | 6.5% | 12.3% | 7.3% | 9.7% | 4.4% |
| Debt to equity | 1.90x | 2.66x | 3.43x | 2.27x | 1.44x | 1.86x | 0.77x | 0.64x | 0.58x | 0.46x | 1.44x |
| Current ratio | 1.84x | 1.40x | 1.22x | 1.45x | 1.38x | 2.17x | 1.66x | 1.76x | 1.60x | 2.40x | 1.60x |
| Cash conversion | 2.63x | — | — | -5.53x | 0.62x | 3.22x | 1.29x | 1.32x | 2.40x | 1.38x | 1.38x |
How it compares in consumer discretionary
Among the 169 consumer discretionary companies here measured on free cash flow, V F pays out less than 112 of them. The median for that group is 33.1%, against this company’s 25.3%.
Closest on free cash flow
- WYNN Resorts (WYNN) 25.2%
- Onespaworld Holdings (OSW) 25.5%
- Aramark (ARMK) 25.7%
- Wolverine World Wide (WWW) 26.5%
Same sector and same denominator, so the figures are comparable. All 197 in consumer discretionary →