Deckers Outdoor Corporation (DECK)

Deckers Outdoor Corporation's Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payments from its customers after making a sale. A lower DSO indicates that the company is able to efficiently collect payments, while a higher DSO suggests potential issues with collections or credit terms.

Analyzing Deckers Outdoor Corporation's DSO trend over the past five years, we observe a fluctuating pattern. In the most recent fiscal year ending March 31, 2024, the DSO decreased to 28.95 days from 30.82 days in the previous year. This reduction in DSO indicates improved efficiency in collecting receivables and may suggest effective credit management or better payment terms with customers.

Comparing the current DSO of 28.95 days to the DSO of the earlier years, we see a downward trend from 2022 to 2024, which is generally seen as a positive sign of improved cash flow management. However, it is important to note that the DSO in 2024 is still higher than the lowest point of 31.83 days in 2021, indicating potential room for further improvement in receivables management.

Overall, the decreasing trend in DSO for Deckers Outdoor Corporation implies that the company is becoming more efficient in collecting payments from customers, which could positively impact cash flow and working capital management in the long run. Continued monitoring of this ratio will be essential to ensure consistent improvement in receivables turnover and cash conversion cycle efficiency.

Peer comparison

Mar 31, 2024

See also:

Deckers Outdoor Corporation Average Receivable Collection Period