Deckers Outdoor Corporation (DECK)
Interest coverage
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 927,514 | 652,751 | 564,707 | 504,205 | 338,135 |
| Interest expense | US$ in thousands | 2,564 | 3,442 | 2,083 | 6,028 | 5,046 |
| Interest coverage | 361.74 | 189.64 | 271.10 | 83.64 | 67.01 |
March 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $927,514K ÷ $2,564K
= 361.74
Deckers Outdoor Corporation's interest coverage has shown a consistent improvement over the past five years, indicating the company's ability to meet its interest obligations with ease. The trend reveals a significant increase in the interest coverage ratio from 67.01 in March 2020 to 361.74 in March 2024, reflecting a positive financial performance and stability in managing its interest expenses. This upward trajectory suggests that Deckers Outdoor Corporation has been generating ample operating income to comfortably cover its interest payments, signifying a healthier financial position and reduced risk of default due to interest burdens. Overall, the company's strong interest coverage ratios demonstrate its capacity to service its debt obligations efficiently and may indicate a sound financial management strategy.
Peer comparison
Mar 31, 2024