Deckers Outdoor Corporation (DECK)
Interest coverage
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,264,193 | 1,173,787 | 1,077,134 | 981,688 | 901,682 | 897,749 | 771,939 | 677,278 | 665,154 | 587,294 | 519,161 | 517,798 | 522,291 | 552,498 | 589,141 | 589,717 | 520,288 | 471,779 | 397,911 | 365,371 |
| Interest expense (ttm) | US$ in thousands | 3,517 | 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 |
| Interest coverage | 359.45 | 372.04 | 311.67 | 296.05 | 274.07 | 287.37 | 229.20 | 199.49 | 193.25 | 147.93 | 136.12 | 140.36 | 147.83 | 100.78 | 108.26 | 102.85 | 86.31 | 84.22 | 83.40 | 71.78 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,264,193K ÷ $3,517K
= 359.45
Deckers Outdoor Corporation's interest coverage ratio has shown a consistently upward trend over the reported periods from June 30, 2020, to March 31, 2025, indicating the company's improving ability to cover its interest expenses. The interest coverage ratio increased from 71.78 as of June 30, 2020, to 359.45 as of March 31, 2025.
This substantial improvement in the interest coverage ratio reflects Deckers Outdoor Corporation's ability to generate sufficient operating income to cover its interest expenses multiple times over. A higher interest coverage ratio suggests that the company is at a lower risk of defaulting on its debt obligations and indicates financial stability.
The progressive increase in the interest coverage ratio over the analyzed periods is a positive indicator of Deckers Outdoor Corporation's financial health and efficient management of its interest-bearing debt. This trend suggests that the company's profitability has been growing relative to its interest expenses, which is favorable for investors and creditors alike.
Peer comparison
Mar 31, 2025
See also:
Deckers Outdoor Corporation Interest Coverage (Quarterly Data)