Deckers Outdoor Corporation (DECK)
Cash conversion cycle
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 51.36 | 65.33 | 71.47 | 49.57 | 63.21 |
| Days of sales outstanding (DSO) | days | 28.95 | 30.82 | 37.18 | 31.83 | 33.16 |
| Number of days of payables | days | 40.98 | 32.56 | 46.18 | 41.26 | 30.00 |
| Cash conversion cycle | days | 39.33 | 63.59 | 62.47 | 40.14 | 66.37 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 51.36 + 28.95 – 40.98
= 39.33
Deckers Outdoor Corporation's cash conversion cycle has exhibited fluctuations over the past five years. The cycle decreased significantly from 66.37 days in 2020 to 39.33 days in 2024, indicating an improvement in the company's ability to convert its resources into cash. This trend suggests that the company has been more efficient in managing its working capital and generating cash from its operations.
However, it is worth noting that there was an increase in the cash conversion cycle in 2023 and 2022 compared to 2021. This may indicate that the company faced challenges in managing its inventory, receivables, and payables during those years, leading to a longer cash conversion cycle.
Overall, the recent improvement in the cash conversion cycle is a positive indication for Deckers Outdoor Corporation, showing enhanced operational efficiency and effective working capital management. This trend reflects positively on the company's ability to generate cash flows and may contribute to its financial stability and growth in the future.
Peer comparison
Mar 31, 2024