Deckers Outdoor Corporation (DECK)
Inventory turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,371,040 | 2,977,280 | 2,588,210 | 2,048,980 | 1,799,390 |
| Inventory | US$ in thousands | 474,311 | 532,852 | 506,796 | 278,242 | 311,620 |
| Inventory turnover | 7.11 | 5.59 | 5.11 | 7.36 | 5.77 |
March 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,371,040K ÷ $474,311K
= 7.11
Deckers Outdoor Corporation's inventory turnover has shown fluctuations over the past five years. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times during the period the company sold and replaced its inventory.
In the fiscal year ending Mar 31, 2024, the inventory turnover ratio was 7.11, which indicates that on average, the company sold and replaced its inventory approximately 7.11 times during the year. This represents an improvement from the previous year when the ratio was 5.59, suggesting a more efficient management of inventory.
Comparing the current ratio to the ratios of the preceding years, we can see that there has been variability in the efficiency of managing the company's inventory. In fiscal years ending 2023, 2022, and 2020, the inventory turnover ratios were 5.59, 5.11, and 5.77 respectively. The highest inventory turnover ratio was recorded in the fiscal year ending Mar 31, 2021, at 7.36.
Overall, the trend of the inventory turnover ratios indicates some inconsistency in managing inventory efficiently over the years, with the current ratio showing improvement. It is essential for Deckers Outdoor Corporation to closely monitor its inventory turnover to ensure optimal management of inventory levels and avoid overstocking or stockouts.
Peer comparison
Mar 31, 2024