Deckers Outdoor Corporation (DECK)

Liquidity ratios

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
Current ratio 3.17 3.08 2.86 3.39 2.86 2.87 2.96 3.84 2.75 2.63 2.44 3.23 2.74 2.70 2.87 3.52 3.25 2.98 3.27 3.97
Quick ratio 2.49 2.05 1.94 2.56 2.15 1.74 1.82 2.59 1.70 1.21 1.30 2.15 1.85 1.66 1.96 2.80 2.59 1.91 2.06 2.80
Cash ratio 2.17 1.40 1.58 2.09 1.78 1.08 1.42 1.97 1.30 0.58 0.87 1.56 1.37 1.09 1.59 2.33 2.02 1.24 1.68 2.16

Deckers Outdoor Corporation's liquidity ratios indicate the company's ability to meet its short-term obligations.

- The current ratio, a measure of short-term solvency, has been fluctuating over the years but generally remains healthy, ranging from a low of 2.44 to a high of 3.97. As of December 31, 2024, the current ratio stands at 3.17, indicating that the company has $3.17 in current assets for every $1 in current liabilities.

- The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also varies but generally reflects a solid liquidity position. The quick ratio ranges from 1.21 to 2.80, with the latest figure as of December 31, 2024, at 2.49. This indicates that the company has $2.49 in quick assets to cover each $1 of current liabilities.

- The cash ratio, a more stringent measure of liquidity that considers only cash and cash equivalents as a proportion of current liabilities, shows Deckers Outdoor Corporation's cash position. The cash ratio varies from 0.58 to 2.33, with the latest figure as of December 31, 2024, at 2.17. This suggests that the company has $2.17 in cash and cash equivalents for every $1 of current liabilities, indicating a strong ability to cover short-term obligations.

Overall, Deckers Outdoor Corporation appears to maintain a strong liquidity position based on its current, quick, and cash ratios over the reporting periods, indicating its ability to meet its short-term financial obligations efficiently.


See also:

Deckers Outdoor Corporation Liquidity Ratios (Quarterly Data)


Additional liquidity measure

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
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

Deckers Outdoor Corporation's cash conversion cycle, which represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has displayed fluctuations over the analyzed period.

The trend shows that the cash conversion cycle was relatively stable in the initial years, with values hovering around 60 days. However, there was an abrupt increase in the cycle in the third quarter of 2020, reaching 89.63 days, indicating a potential delay in converting resources into cash. This was followed by a significant improvement towards the end of the same year, where the cycle dropped to 50.47 days.

Subsequently, the company managed to maintain a relatively efficient cash conversion cycle throughout the first half of 2021, with values consistently below 50 days. However, this trend reversed in the third quarter of 2021, where the cycle rose to 71.08 days, signifying a potential delay in cash generation.

Over the subsequent quarters, Deckers Outdoor Corporation saw varying levels of improvement and deterioration in its cash conversion cycle, with values fluctuating between approximately 40 and 105 days. The cycle experienced notable fluctuations, reaching its lowest point at the end of 2024, with 23.55 days, indicating a more efficient conversion of resources into cash.

Overall, the analysis of the cash conversion cycle reveals fluctuations in Deckers Outdoor Corporation's efficiency in managing its working capital over the analyzed period, with varying levels of effectiveness in converting investments into cash flows.