Deckers Outdoor Corporation (DECK)
Solvency ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| 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 | 1.42 | 1.49 | 1.45 | 1.52 | 1.50 |
Deckers Outdoor Corporation's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity over the past five years. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been recorded at 0.00%, suggesting that the company operates with minimal financial leverage and a healthy balance sheet structure.
Additionally, the financial leverage ratio has ranged from 1.42 to 1.52 over the same period, reflecting a moderate level of financial risk. A lower financial leverage ratio indicates lower reliance on debt to finance operations, which can reduce the company's overall financial risk and enhance its ability to withstand economic downturns.
Overall, Deckers Outdoor Corporation's solvency ratios demonstrate a conservative approach to managing its debt levels and a solid financial foundation that supports long-term stability and growth.
Coverage ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 354.51 | 382.80 | 194.52 | 272.07 | 84.20 |
The interest coverage ratio measures a company's ability to pay interest on its outstanding debt obligations. Deckers Outdoor Corporation's interest coverage has shown a positive trend over the years, indicating a strong ability to service its interest payments.
As of March 31, 2021, the interest coverage ratio was 84.20, indicating that the company generated 84.20 times the amount of operating income needed to cover its interest expenses for that period. This level of coverage may be concerning as it suggests a lower margin of safety in meeting interest obligations.
However, by March 31, 2022, the interest coverage ratio improved significantly to 272.07, demonstrating a substantial increase in the company's ability to cover its interest payments, which is a positive sign of financial health and stability.
In the subsequent years, Deckers Outdoor Corporation maintained strong interest coverage ratios, with values of 194.52 on March 31, 2023, 382.80 on March 31, 2024, and 354.51 on March 31, 2025. These ratios indicate a consistent ability to comfortably meet interest obligations, which reflects positively on the company's financial management and profitability.
Overall, Deckers Outdoor Corporation has exhibited a commendable improvement in its interest coverage ratio over the years, reflecting a healthier financial position and enhanced capacity to handle its debt-related expenses.