Deckers Outdoor Corporation (DECK)
Financial leverage ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,135,580 | 2,556,200 | 2,332,250 | 2,167,700 | 1,765,120 |
| Total stockholders’ equity | US$ in thousands | 2,107,470 | 1,765,730 | 1,538,820 | 1,444,220 | 1,140,120 |
| Financial leverage ratio | 1.49 | 1.45 | 1.52 | 1.50 | 1.55 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,135,580K ÷ $2,107,470K
= 1.49
Deckers Outdoor Corporation's financial leverage ratio has shown some variability over the past five years, ranging from 1.45 to 1.55. The ratio gives insight into the company's capital structure and financial risk. A financial leverage ratio of 1.49 in 2024 indicates that the company's debt accounts for approximately 49% of its total capital, with the remaining 51% contributed by equity.
Comparing the current ratio with previous years, it appears that Deckers Outdoor Corporation's financial leverage has slightly increased in 2024 compared to 2023, but it remains lower than the ratio in 2022. This suggests that the company has taken on slightly more debt relative to equity in the most recent year, which may indicate a potential increase in financial risk.
It is essential for investors and stakeholders to monitor changes in the financial leverage ratio over time to assess the company's ability to meet its financial obligations and manage its debt levels effectively. While a higher ratio can indicate higher financial risk, it can also lead to higher returns when managed appropriately. Additional analysis and context about the company's overall financial health and performance would provide a more comprehensive understanding of the implications of the financial leverage ratio trends for Deckers Outdoor Corporation.
Peer comparison
Mar 31, 2024