Deckers Outdoor Corporation (DECK)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,502,050 | 981,795 | 843,527 | 1,089,360 | 649,436 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 340,124 | 306,295 | 320,931 | 222,028 | 193,747 |
| Total current liabilities | US$ in thousands | 719,993 | 497,380 | 541,684 | 468,368 | 300,946 |
| Quick ratio | 2.56 | 2.59 | 2.15 | 2.80 | 2.80 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,502,050K
+ $—K
+ $340,124K)
÷ $719,993K
= 2.56
The quick ratio of Deckers Outdoor Corporation has been relatively stable over the past five years, ranging from 2.15 to 2.80. This indicates that the company has consistently maintained a strong ability to meet its short-term obligations using its most liquid assets, such as cash, marketable securities, and accounts receivable.
A quick ratio above 1.0 suggests that the company is in a good position to cover its short-term liabilities without having to rely heavily on inventory. Deckers Outdoor Corporation's quick ratio has consistently exceeded this benchmark, indicating a strong liquidity position.
The slight fluctuations in the quick ratio over the years do not raise significant concerns, as the company's quick assets have generally been sufficient to cover its current liabilities. Overall, the trend in the quick ratio reflects Deckers Outdoor Corporation's sound financial health and ability to manage its short-term obligations effectively.
Peer comparison
Mar 31, 2024