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Key Financials on Vf Corporation

In: Business and Management

Submitted By Becka92
Words 354
Pages 2
Financial data is important in measuring businesses profits, losses and its general progress through time. I have used BLOOMBERG to identify key statistics and ratios that I will break down and use in my analysis of the VF Corporation. I shall also use these statistics to compare VFC with GAP, another large retail organization that owns a number of large businesses, and the industry average. This will be useful in deciphering the differences between both businesses progressions in comparison to the industry as a whole.
Looking at the profit margin for VFC (9.98%), GAP (5.72%) and the industry (6.22%) I see that VFC has a margin much higher than both the average and GAP, meaning it controls its costs better, and for every dollar sale VFC is able to keep $0.09 as net profit. VFC’s operating margin shows the same progress; with 13.47% compared to the industry average and GAP which both have 9.88%. a higher operating margin shows that VFC is able to pay off costs a lot easier and have money left over. Looking at the asset turnover ratio I see that VFC (1.12%) falls below the industry average of 1.41% showing that it is not as efficient as using its assets to generate sales or revenue as GAP or the industry in general. This could be because VFC has too many assets(…). VFC’s equity multiplier (1.87%) is higher than the industry average (1.41%) and lower than GAP (2.69%). A high equity multiplier indicates a higher financial leverage, which can be seen as a positive, but it can also mean the company is relying on its debt to finance the business which could be seen as very risky. VFC’s ROA (11.46%) is a lot higher than the industry average of 8.8%, indicating that the company is efficient in using its assets to generate earnings. The ROE for VFC (22.5%) is also higher than the industry average of 16.7% indicating a larger amount of net income is returned to the business as a percentage of the equity.…...

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