Deckers Outdoor Corporation (DECK)
Liquidity ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Current ratio | 3.72 | 3.39 | 3.84 | 3.23 | 3.52 |
| Quick ratio | 2.89 | 2.50 | 2.59 | 2.15 | 2.80 |
| Cash ratio | 2.45 | 2.09 | 1.97 | 1.56 | 2.33 |
Deckers Outdoor Corporation's liquidity ratios indicate the company's ability to meet its short-term obligations and cover its current liabilities.
1. Current Ratio:
- The current ratio shows a favorable trend over the years, with values ranging from 3.23 to 3.84. This indicates that Deckers has more than enough current assets to cover its current liabilities for the respective years.
- A current ratio above 1 is generally considered healthy, and Deckers' ratios well exceed this threshold, suggesting a strong ability to meet its short-term obligations.
2. Quick Ratio:
- The quick ratio also demonstrates a generally positive trend, though slightly lower than the current ratio. The values range from 2.15 to 2.89.
- This ratio is more stringent as it excludes inventories from current assets, focusing on more liquid assets. Even with this stricter measure, Deckers still shows a strong ability to cover its short-term liabilities.
3. Cash Ratio:
- The cash ratio, which is the most conservative liquidity measure, shows a consistent improvement over the years, ranging from 1.56 to 2.45.
- This ratio indicates Deckers' ability to cover its current liabilities with cash and cash equivalents alone. The increasing trend suggests that Deckers has been building up its cash reserves, enhancing its liquidity position.
Overall, based on these liquidity ratios, Deckers Outdoor Corporation appears to have a robust liquidity position, with ample resources to meet its short-term financial obligations and operate efficiently.
See also:
Additional liquidity measure
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 37.80 | 43.63 | 84.96 | 79.60 | 46.36 |
The cash conversion cycle of Deckers Outdoor Corporation has displayed fluctuations over the last five years. In March 2021, the company's cash conversion cycle was 46.36 days, indicating that it took the company approximately 46 days to convert its investments in inventory and other resources into cash. However, this metric increased to 79.60 days by March 2022, suggesting a longer period to convert resources into cash.
By March 2023, the cash conversion cycle further extended to 84.96 days, reflecting a potentially less efficient management of working capital in converting inventory to cash. Subsequently, the company managed to significantly improve its cash conversion cycle by March 2024, reducing it to 43.63 days, indicating better efficiency in managing working capital.
The most recent data point, as of March 2025, shows that Deckers Outdoor Corporation further improved its cash conversion cycle to 37.80 days, potentially indicating enhanced operational efficiency and effectiveness in converting investments into cash.
Overall, the fluctuation in the cash conversion cycle of Deckers Outdoor Corporation over the past five years suggests varying levels of efficiency in managing working capital, with the company showing improvement in its cash conversion cycle in the most recent period.