Deckers Outdoor Corporation (DECK)
Interest coverage
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,246,820 | 981,505 | 669,524 | 566,721 | 507,542 |
| Interest expense | US$ in thousands | 3,517 | 2,564 | 3,442 | 2,083 | 6,028 |
| Interest coverage | 354.51 | 382.80 | 194.52 | 272.07 | 84.20 |
March 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,246,820K ÷ $3,517K
= 354.51
The interest coverage ratio for Deckers Outdoor Corporation has shown a consistently strong trend over the past five years based on the provided data. As of March 31, 2021, the interest coverage stood at a healthy 84.20, demonstrating that the company's operating income was 84.20 times its interest expense for that period.
Subsequently, there was a significant improvement in the interest coverage ratio for the following years. By March 31, 2022, the ratio had surged to 272.07, indicating a substantial increase in the company's ability to cover its interest obligations with operating income.
Although there was a slight decline in the interest coverage ratio in the next fiscal year to 194.52 by March 31, 2023, the ratio still reflected a robust position, signifying that Deckers Outdoor Corporation continued to generate sufficient operating income to comfortably cover its interest payments.
The trend reversed in the subsequent years as the interest coverage ratio surged to 382.80 by March 31, 2024, and then slightly decreased to 354.51 by March 31, 2025. These ratios suggest that the company's ability to meet its interest obligations with operating income remained exceptionally strong, indicating a solid financial position and sound management of debt obligations.
Overall, the trend in Deckers Outdoor Corporation's interest coverage ratio demonstrates a consistently healthy financial performance and a strong ability to fulfill its interest payment obligations, highlighting the company's effective management of debt and operational efficiency.
Peer comparison
Mar 31, 2025