Deckers Outdoor Corporation (DECK)
Solvency ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.49 | 1.45 | 1.52 | 1.50 | 1.55 |
Based on the solvency ratios provided for Deckers Outdoor Corporation, we observe consistent trends over the past five fiscal years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios are all reported as 0.00 for each year, indicating that the company has not taken on any debt relative to its assets, capital, or equity during this period.
However, the financial leverage ratio has seen some fluctuation, ranging from 1.45 to 1.55 over the same period. This ratio reached a peak of 1.55 in the fiscal year ending March 31, 2020, and decreased to 1.49 by the end of the most recent fiscal year. The financial leverage ratio measures the proportion of a company's assets that are financed by debt compared to equity, with higher ratios indicating higher financial risk.
Overall, based on the information provided, Deckers Outdoor Corporation appears to maintain a strong financial position with minimal reliance on debt for its operations. The decrease in the financial leverage ratio suggests a potential improvement in the company's financial leverage and a more conservative capital structure strategy.
Coverage ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 361.74 | 189.64 | 271.10 | 83.64 | 67.01 |
Deckers Outdoor Corporation's interest coverage has shown a positive trend over the past five years. The interest coverage ratio measures the company's ability to pay interest expenses on its outstanding debt using its operating income.
In the most recent fiscal year ending March 31, 2024, Deckers Outdoor Corporation's interest coverage ratio was 361.74, indicating a significant improvement compared to the previous years. This signifies that the company's operating income was 361.74 times greater than its interest expenses in that year, demonstrating a strong capacity to cover its interest obligations.
The substantial increase in the interest coverage ratio from 2021 to 2024 suggests an enhanced ability to meet its interest payments comfortably. This improvement reflects positively on the company's financial health and indicates a reduced risk of default on its debt obligations.
Overall, Deckers Outdoor Corporation's consistently improving interest coverage ratio signifies a positive trend in its ability to service its debt, enhancing investor confidence in the company's financial stability and sustainability.