Deckers Outdoor Corporation (DECK)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.72 | 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 |
| Quick ratio | 2.89 | 2.49 | 2.05 | 1.95 | 2.50 | 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 |
| Cash ratio | 2.45 | 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 |
Deckers Outdoor Corporation's liquidity ratios show fluctuations over the past few years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, ranged from a high of 3.84 in March 2023 to a low of 2.44 in June 2022. Although there were fluctuations, the current ratio generally remained above 2, indicating that Deckers Outdoor Corporation had a healthy level of current assets to cover its current liabilities throughout the period.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also showed variability. It ranged from a low of 1.21 in September 2022 to a high of 2.89 in March 2025. Similar to the current ratio, the quick ratio generally stayed above 1, implying that the company had an adequate level of liquid assets to cover its short-term liabilities.
The cash ratio, which is the most conservative liquidity ratio as it only includes cash and cash equivalents in the numerator, fluctuated as well. It ranged from a low of 0.58 in September 2022 to a high of 2.45 in March 2025. The cash ratio below 1 in some periods indicates that Deckers Outdoor Corporation may have had some difficulty in meeting its short-term obligations using only cash and cash equivalents.
In conclusion, Deckers Outdoor Corporation maintained relatively healthy liquidity levels during the period, as indicated by its current ratio consistently above 2. However, there were fluctuations in the quick and cash ratios, suggesting that the company should continue to monitor its liquidity position and manage its cash resources effectively to ensure it can meet its short-term obligations efficiently.
See also:
Deckers Outdoor Corporation Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Deckers Outdoor Corporation has exhibited fluctuations over the past few years based on the provided data. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A longer cash conversion cycle indicates that the company takes more time to recoup its investment in inventory.
Analyzing the data, we observe that Deckers Outdoor Corporation's cash conversion cycle ranged from a high of 143.05 days on September 30, 2022, to a low of 22.79 days on December 31, 2024. This significant variance in the cash conversion cycle indicates variability in the company's efficiency in managing its working capital.
The company experienced a relatively long cash conversion cycle in the periods ending September 30, 2020, and September 30, 2022, which may suggest challenges in inventory management or slower collection of receivables during these periods. Conversely, the shorter cash conversion cycles observed on December 31, 2020, and December 31, 2024, could indicate more efficient working capital management and faster conversion of inventory into cash.
Overall, it is essential for Deckers Outdoor Corporation to closely monitor its cash conversion cycle to ensure optimal working capital management. By effectively managing inventory levels, accounts receivable, and accounts payable, the company can strive to shorten its cash conversion cycle, leading to improved liquidity and financial performance.