Deckers Outdoor Corporation (DECK)

Liquidity ratios

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
Current ratio 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 2.89 2.44 2.69
Quick ratio 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 1.97 1.11 1.51
Cash ratio 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 1.33 0.38 1.14

Deckers Outdoor Corporation's liquidity ratios have shown a general trend of improvement over the past few quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has remained relatively stable and above 2. This indicates that Deckers is maintaining a strong level of liquidity.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown improvement over the quarters. Although the ratio fluctuates, it generally remains above 1, suggesting that Deckers is able to meet its short-term obligations with its most liquid assets.

The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has also demonstrated a positive trend. The ratio has increased over the quarters, indicating that Deckers has been building up its cash reserves and is in a strong position to meet its immediate liabilities.

Overall, Deckers Outdoor Corporation's liquidity ratios reflect a healthy financial position, with a strong ability to meet its short-term obligations and withstand financial challenges.

See also:

Deckers Outdoor Corporation Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
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

The cash conversion cycle of Deckers Outdoor Corporation has shown fluctuations over the past few quarters. The cash conversion cycle, which measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, provides insights into the efficiency of a company's working capital management.

In the most recent quarter, as of March 31, 2024, the cash conversion cycle was 39.33 days, indicating that Deckers Outdoor Corporation took approximately 39 days to convert its investment in inventory and other resources into cash from sales. This represents a slight increase from the previous quarter, where the cycle was 34.34 days. The increase in the cash conversion cycle suggests that the company may be taking longer to sell its inventory or collecting cash from customers.

Looking back over the past year, the company experienced fluctuations in its cash conversion cycle. For example, in September 2023, the cycle was at its highest at 105.55 days, indicating a significant delay in converting investments into cash flows. However, in December 2021, the cycle was at its lowest at 40.15 days, showing a more efficient use of working capital.

Overall, the trend in Deckers Outdoor Corporation's cash conversion cycle indicates that the company has experienced variability in its working capital efficiency. It is essential for the company to monitor and manage its inventory levels, accounts receivable, and accounts payable effectively to improve its cash conversion cycle and optimize its working capital management.