Deckers Outdoor Corporation (DECK)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,149,429 | 1,070,054 | 989,585 | 927,514 | 889,171 | 763,932 | 667,146 | 652,751 | 628,130 | 558,866 | 559,216 | 564,707 | 538,054 | 573,313 | 573,736 | 504,205 | 466,215 | 393,326 | 361,853 | 338,135 |
| Interest expense (ttm) | US$ in thousands | 3,155 | 3,456 | 3,316 | 3,290 | 3,124 | 3,368 | 3,395 | 3,442 | 3,970 | 3,814 | 3,689 | 3,533 | 5,482 | 5,442 | 5,734 | 6,028 | 5,602 | 4,771 | 5,090 | 5,046 |
| Interest coverage | 364.32 | 309.62 | 298.43 | 281.92 | 284.63 | 226.82 | 196.51 | 189.64 | 158.22 | 146.53 | 151.59 | 159.84 | 98.15 | 105.35 | 100.06 | 83.64 | 83.22 | 82.44 | 71.09 | 67.01 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,149,429K ÷ $3,155K
= 364.32
Deckers Outdoor Corporation's interest coverage ratio has been steadily increasing over the past few years, indicating a strong ability to meet its interest payment obligations. The interest coverage ratio has improved from 67.01 as of March 31, 2020, to a high of 364.32 as of December 31, 2024.
This upward trend suggests that Deckers Outdoor Corporation's operating income is more than sufficient to cover its interest expenses, providing a comfortable buffer against potential financial distress. A higher interest coverage ratio signifies a lower risk of default on interest payments and reflects the company's financial stability and ability to service its debt obligations.
Overall, the consistent improvement in Deckers Outdoor Corporation's interest coverage ratio reflects the company's effective management of debt and financial resources, thereby enhancing its financial health and sustainability.
Peer comparison
Dec 31, 2024
See also:
Deckers Outdoor Corporation Interest Coverage (Quarterly Data)