Deckers Outdoor Corporation (DECK)
Payables turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,099,950 | 1,902,280 | 1,801,920 | 1,542,790 | 1,171,550 |
| Payables | US$ in thousands | 417,955 | 378,503 | 265,605 | 327,487 | 231,632 |
| Payables turnover | 5.02 | 5.03 | 6.78 | 4.71 | 5.06 |
March 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,099,950K ÷ $417,955K
= 5.02
The payables turnover ratio is a financial metric that measures how efficiently a company manages its accounts payable by comparing the cost of goods sold to its average accounts payable balance.
Based on the data provided for Deckers Outdoor Corporation, the payables turnover ratio has fluctuated over the years as follows:
- March 31, 2021: 5.06
- March 31, 2022: 4.71
- March 31, 2023: 6.78
- March 31, 2024: 5.03
- March 31, 2025: 5.02
The payables turnover ratio indicates how many times a company pays off its suppliers in a given period. A higher payables turnover ratio generally suggests that the company is managing its accounts payable efficiently by paying off its suppliers quickly. On the other hand, a lower ratio may indicate that the company is taking longer to pay its suppliers.
In the case of Deckers Outdoor Corporation, the payables turnover ratio has varied over the years, which could be attributed to changes in the company's payment terms with suppliers, changes in purchasing patterns, or other operational factors. Overall, the company's payables turnover ratio has shown some stability, falling within a reasonable range compared to industry benchmarks.
It is important for Deckers Outdoor Corporation to monitor its payables turnover ratio continuously to ensure efficient management of its accounts payable, maintain good relationships with suppliers, and optimize working capital management.
Peer comparison
Mar 31, 2025