Deckers Outdoor Corporation (DECK)
Cash conversion cycle
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 86.08 | 91.01 | 107.94 | 119.90 | 86.69 |
| Days of sales outstanding (DSO) | days | 24.37 | 25.25 | 30.82 | 37.18 | 31.83 |
| Number of days of payables | days | 72.65 | 72.63 | 53.80 | 77.48 | 72.17 |
| Cash conversion cycle | days | 37.80 | 43.63 | 84.96 | 79.60 | 46.36 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 86.08 + 24.37 – 72.65
= 37.80
The cash conversion cycle of Deckers Outdoor Corporation has shown variability over the past five years. As of March 31, 2021, the company's cash conversion cycle was 46.36 days. It then increased significantly to 79.60 days as of March 31, 2022, and continued to rise to 84.96 days by March 31, 2023. Subsequently, there was a notable improvement in the cycle as it decreased to 43.63 days on March 31, 2024, and even further decreased to 37.80 days by March 31, 2025.
The cash conversion cycle measures the time it takes for a company to convert its resource inputs into cash inflows. A shorter cash conversion cycle indicates that the company is efficiently managing its working capital and converting inventory and receivables into cash more quickly. Conversely, a longer cycle may suggest inefficiencies in the company's operations or challenges in converting its resources into cash.
Deckers Outdoor Corporation's fluctuating cash conversion cycle reflects varying efficiency levels in managing its working capital and cash flow over the years. It is important for the company to analyze the factors contributing to these fluctuations to optimize its working capital management and enhance its overall financial performance.
Peer comparison
Mar 31, 2025