Deckers Outdoor Corporation (DECK)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 353,084 | 342,036 | 335,317 |
| Interest expense (ttm) | US$ in thousands | 2,927 | 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 | 2,863 | 3,705 | 3,821 |
| Interest coverage | 316.88 | 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 | 123.33 | 92.32 | 87.76 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $927,514K ÷ $2,927K
= 316.88
The interest coverage ratio for Deckers Outdoor Corporation has displayed a generally improving trend over the past few quarters, indicating the company's ability to comfortably cover its interest expenses with its operating income. The ratio has consistently been well above 1, with the most recent value at 316.88 as of March 31, 2024, showcasing a strong ability to service its debt obligations.
The significant increase in the interest coverage ratio from 67.01 in March 2020 to 316.88 in March 2024 highlights the enhanced financial health of the company and its improved capacity to meet interest payments. This progression suggests that Deckers Outdoor Corporation has become more efficient in generating earnings relative to its interest expenses, which is a positive sign for investors and creditors.
Overall, the consistent improvement in the interest coverage ratio reflects a strengthening financial position for Deckers Outdoor Corporation and signals a reduced financial risk associated with its debt repayment capabilities.
Peer comparison
Mar 31, 2024
See also:
Deckers Outdoor Corporation Interest Coverage (Quarterly Data)