Deckers Outdoor Corporation (DECK)
Cash conversion cycle
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 55.61 | 78.92 | 79.50 | 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 |
| Days of sales outstanding (DSO) | days | 24.48 | 44.75 | 27.36 | 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 |
| Number of days of payables | days | 56.55 | 54.44 | 67.82 | 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 |
| Cash conversion cycle | days | 23.55 | 69.24 | 39.04 | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 55.61 + 24.48 – 56.55
= 23.55
The cash conversion cycle of Deckers Outdoor Corporation has shown fluctuations over the analyzed period. It measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates that the company is managing its working capital efficiently.
Analyzing the data provided, we observe that:
- The cash conversion cycle ranged from a low of 23.55 days as of December 31, 2024, to a high of 105.55 days as of September 30, 2022.
- The company exhibited a decreasing trend in the cash conversion cycle from September 2020 to December 2023, indicating potential improvements in managing inventory, accounts receivable, and accounts payable.
- However, there was a noticeable increase in the cash conversion cycle in the subsequent periods, particularly in the second half of 2022 and the first half of 2023.
- Generally, a shorter cash conversion cycle is favorable, as it implies quicker cash generation and better liquidity management.
Deckers Outdoor Corporation may benefit from further analysis to identify the underlying reasons for the fluctuations in its cash conversion cycle and implement strategies to optimize working capital management, streamline operations, and improve cash flow efficiency.
Peer comparison
Dec 31, 2024
See also:
Deckers Outdoor Corporation Cash Conversion Cycle (Quarterly Data)