Deckers Outdoor Corporation (DECK)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,149,429 | 1,070,054 | 989,585 | 927,514 | 889,171 | 763,932 | 667,146 | 652,751 | 628,130 | 558,866 | 559,216 | 564,707 | 538,054 | 573,313 | 573,736 | 504,205 | 466,215 | 393,326 | 361,853 | 338,135 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,630,920 | 2,223,240 | 2,074,480 | 2,107,470 | 2,104,190 | 1,795,130 | 1,802,120 | 1,765,730 | 1,769,170 | 1,515,840 | 1,472,410 | 1,538,820 | 1,564,740 | 1,463,750 | 1,418,990 | 1,444,220 | 1,520,120 | 1,242,960 | 1,136,930 | 1,140,120 |
| Return on total capital | 43.69% | 48.13% | 47.70% | 44.01% | 42.26% | 42.56% | 37.02% | 36.97% | 35.50% | 36.87% | 37.98% | 36.70% | 34.39% | 39.17% | 40.43% | 34.91% | 30.67% | 31.64% | 31.83% | 29.66% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,149,429K ÷ ($—K + $2,630,920K)
= 43.69%
Deckers Outdoor Corporation has shown a steady and positive trend in its return on total capital over the past few years. The return on total capital increased from 29.66% as of March 31, 2020, to a peak of 48.13% as of September 30, 2024. This indicates the company's ability to generate profit relative to the total capital employed in its operations.
Although there was a slight dip in the return on total capital from the peak in September 2024 to 43.69% by the end of December 2024, the overall trend remains positive and reflects the company's efficiency in utilizing its capital effectively.
The return on total capital percentage above the industry average often indicates a competitive advantage and efficient management of resources within the company. Deckers Outdoor Corporation's consistent improvement in return on total capital is a positive signal for investors and stakeholders, highlighting the company's ability to generate strong returns on the capital invested in its operations.
Peer comparison
Dec 31, 2024