Deckers Outdoor Corporation (DECK)
Cash conversion cycle
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 51.36 | 60.85 | 84.33 | 89.38 | 65.33 | 89.71 | 118.16 | 113.34 | 71.47 | 82.31 | 101.25 | 76.11 | 49.63 | 58.74 | 96.51 | 89.14 | 63.31 | 74.14 | 116.71 | 100.80 |
| Days of sales outstanding (DSO) | days | 28.95 | 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 | 33.16 | 50.04 | 59.48 | 29.16 |
| Number of days of payables | days | 40.98 | 57.25 | 55.37 | 63.12 | 32.56 | 60.44 | 61.69 | 81.56 | 46.18 | 72.05 | 79.11 | 65.46 | 41.32 | 58.30 | 62.38 | 51.96 | 30.05 | 49.59 | 65.45 | 63.90 |
| Cash conversion cycle | days | 39.33 | 34.34 | 75.79 | 54.90 | 63.58 | 63.08 | 105.55 | 69.91 | 62.47 | 53.03 | 71.08 | 40.02 | 40.15 | 50.47 | 89.63 | 62.81 | 66.42 | 74.59 | 110.75 | 66.06 |
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 shown significant fluctuations over the past several quarters. The cash conversion cycle represents the number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In the most recent quarter, as of March 31, 2024, Deckers Outdoor Corporation's cash conversion cycle stood at 39.33 days. This indicates that the company takes approximately 39 days to convert its resource investments into cash flows, suggesting efficient management of working capital.
Looking back over the last few quarters, there have been fluctuations in the cash conversion cycle. In previous quarters, such as September 30, 2023, and December 31, 2022, the cash conversion cycle was much longer, at 75.79 days and 105.55 days respectively. This could suggest that the company faced challenges in efficiently managing its inventory, accounts receivable, and accounts payable during those periods.
Conversely, there were quarters where the cash conversion cycle was shorter, like December 31, 2021, at 40.15 days, indicating improved efficiency in working capital management during that period.
Overall, Deckers Outdoor Corporation should continue to focus on optimizing its cash conversion cycle to ensure efficient use of its resources and maintain healthy cash flows. Monitoring and managing inventory levels, accounts receivable collection, and payment terms with suppliers will be key areas to focus on to improve the cash conversion cycle and overall working capital management.
Peer comparison
Mar 31, 2024
See also:
Deckers Outdoor Corporation Cash Conversion Cycle (Quarterly Data)