Deckers Outdoor Corporation (DECK)

Activity ratios

Short-term

Turnover ratios

	Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Inventory turnover	4.24	4.01	3.38	3.04	4.21
Receivables turnover	14.98	14.46	11.84	9.82	11.47
Payables turnover	5.02	5.03	6.78	4.71	5.06
Working capital turnover	2.38	2.49	2.57	2.60	2.15

Deckers Outdoor Corporation's activity ratios provide insights into how efficiently the company manages its inventory, receivables, payables, and working capital.

1. Inventory turnover: The inventory turnover ratio shows how many times Deckers Outdoor Corporation's inventory was sold and replaced during a specific period. The trend shows a fluctuation, ranging from 3.04 in March 2022 to 4.24 in March 2025. A higher inventory turnover ratio indicates that the company is selling its goods quickly.

2. Receivables turnover: The receivables turnover ratio measures how effectively Deckers collects outstanding receivables from customers. The trend indicates an increasing pattern, from 9.82 in March 2022 to 14.98 in March 2025. A higher receivables turnover ratio reflects efficient management of credit and collection practices.

3. Payables turnover: The payables turnover ratio signifies how efficiently Deckers pays its suppliers. The ratio remained relatively stable, with values ranging from 4.71 to 6.78 over the years. A higher payables turnover ratio suggests that the company is managing its payables effectively.

4. Working capital turnover: The working capital turnover ratio examines how well Deckers utilizes its working capital to generate sales. The trend shows a slight decline from 2.60 in March 2022 to 2.38 in March 2025. A higher working capital turnover ratio indicates efficient utilization of resources to drive revenue generation.

Overall, the analysis of these activity ratios suggests that Deckers Outdoor Corporation has been effectively managing its inventory, receivables, payables, and working capital over the years, reflecting good operational efficiency and financial management practices.

Average number of days

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Days of inventory on hand (DOH)	days	86.08	91.01	107.94	119.90	86.69
Days of sales outstanding (DSO)	days	24.37	25.25	30.82	37.18	31.83
Number of days of payables	days	72.65	72.63	53.80	77.48	72.17

Deckers Outdoor Corporation's activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH): In March 2021, Deckers had 86.69 days of inventory on hand, which increased to 119.90 days in March 2022, indicating a longer period needed to sell its inventory. However, the DOH improved in the following years, reaching 86.08 days by March 2025, suggesting more efficient inventory management overall.

2. Days of Sales Outstanding (DSO): The DSO measures how long it takes for the company to collect payment on credit sales. Deckers had 31.83 days of sales outstanding in March 2021, which increased to 37.18 days in March 2022. The DSO then steadily decreased, reaching 24.37 days by March 2025, indicating improved efficiency in collecting receivables.

3. Number of Days of Payables: This ratio shows how long it takes for Deckers to pay its suppliers. In March 2021, the company had 72.17 days of payables, which increased to 77.48 days in March 2022. However, it significantly improved to 53.80 days in March 2023, suggesting a more favorable payment arrangement with suppliers.

Overall, Deckers Outdoor Corporation effectively managed its activity ratios over the years, demonstrating improvements in inventory turnover, receivables collection, and payables management. These ratios indicate enhanced operational efficiency and effective working capital management within the company.

Long-term

	Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Fixed asset turnover	—	—	13.60	7.78	12.34
Total asset turnover	1.40	1.37	1.42	1.35	1.17

Deckers Outdoor Corporation's long-term activity ratios provide insight into how efficiently the company is utilizing its assets to generate sales.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively a company is generating revenue from its fixed assets.
- In 2021, Deckers had a high fixed asset turnover of 12.34, indicating that the company was able to generate significant sales relative to its investment in fixed assets.
- However, this ratio decreased to 7.78 in 2022, suggesting a potential decrease in efficiency in utilizing fixed assets to generate revenue.
- The ratio then increased substantially to 13.60 in 2023, showing improved efficiency in converting fixed assets into sales.
- There is missing data for 2024 and 2025, so it is not possible to analyze the trend for those years.

2. Total Asset Turnover:
- The total asset turnover ratio indicates how well a company is using all its assets to generate revenue.
- Deckers' total asset turnover ratio increased from 1.17 in 2021 to 1.35 in 2022, reflecting an improvement in the company's ability to generate sales relative to its total assets.
- The ratio continued to increase slightly to 1.42 in 2023, indicating further efficiency in asset utilization.
- In 2024 and 2025, the total asset turnover ratio remained relatively stable at 1.37 and 1.40, respectively.

Overall, Deckers Outdoor Corporation's activity ratios suggest varying levels of efficiency in utilizing fixed and total assets to generate sales over the years analyzed. The company experienced fluctuations in performance, with some years showing significant improvements in asset turnover, while others showed stability. It is important for the company to focus on maintaining and improving its asset turnover ratios to ensure optimal utilization of resources and sustainable revenue generation.