Deckers Outdoor Corporation (DECK)
Cash conversion cycle
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 86.08 | 100.43 | 140.91 | 141.30 | 91.01 | 104.78 | 142.02 | 149.21 | 107.94 | 148.02 | 196.62 | 189.34 | 119.90 | 140.77 | 175.22 | 131.02 | 86.69 | 102.15 | 167.00 | 155.23 |
| Days of sales outstanding (DSO) | days | 24.37 | 24.48 | 44.75 | 28.24 | 25.25 | 30.75 | 46.82 | 28.65 | 30.82 | 33.81 | 49.08 | 38.13 | 37.18 | 42.76 | 48.93 | 29.37 | 31.83 | 50.03 | 55.50 | 25.63 |
| Number of days of payables | days | 72.65 | 102.12 | 97.20 | 120.54 | 72.63 | 98.60 | 93.24 | 105.38 | 53.80 | 99.72 | 102.65 | 136.25 | 77.48 | 123.21 | 136.90 | 112.68 | 72.17 | 101.38 | 107.94 | 90.49 |
| Cash conversion cycle | days | 37.80 | 22.79 | 88.46 | 49.01 | 43.63 | 36.93 | 95.60 | 72.48 | 84.96 | 82.11 | 143.05 | 91.23 | 79.61 | 60.32 | 87.25 | 47.71 | 46.36 | 50.79 | 114.56 | 90.38 |
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 fluctuations over the analyzed period. The cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory into cash flows from sales, provides insights into the efficiency of the company's working capital management.
In the period from June 30, 2020, to September 30, 2021, the cash conversion cycle fluctuated within a range of approximately 46 to 114 days. A lower number of days indicates a faster conversion of inventory to cash, while a higher number may suggest inefficiencies in managing working capital.
During the analyzed period, the company experienced improvements in its cash conversion cycle, with a significant decrease from September 30, 2021, to December 31, 2023, where the cycle decreased from 143.05 days to 36.93 days. This reduction indicates enhanced efficiency in managing inventory, collections, and payments.
However, the cash conversion cycle increased again from March 31, 2023, to September 30, 2024, reaching a peak of 88.46 days. This increase may signal challenges in managing working capital efficiently, potentially impacting the company's liquidity and cash flow.
Deckers Outdoor Corporation should closely monitor its cash conversion cycle to ensure optimal working capital management, timely collections, and efficient inventory turnover to support its financial performance and liquidity position.
Peer comparison
Mar 31, 2025
See also:
Deckers Outdoor Corporation Cash Conversion Cycle (Quarterly Data)