Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||
Net operating profit after taxes (NOPAT)1 | 502,935) | 438,551) | 385,286) | 286,146) | 281,186) | 130,421) | |
Invested capital2 | 1,948,548) | 1,736,074) | 1,642,284) | 1,422,595) | 1,307,197) | 1,227,436) | |
Performance Ratio | |||||||
ROIC3 | 25.81% | 25.26% | 23.46% | 20.11% | 21.51% | 10.63% | |
Benchmarks | |||||||
ROIC, Competitors4 | |||||||
lululemon athletica inc. | 20.63% | 26.61% | 18.52% | 23.66% | 21.12% | — | |
Nike Inc. | 24.58% | 26.29% | 26.11% | 12.98% | 29.49% | 17.76% |
Based on: 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31).
1 NOPAT. See details »
2 Invested capital. See details »
3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 502,935 ÷ 1,948,548 = 25.81%
4 Click competitor name to see calculations.
Performance ratio | Description | The company |
---|---|---|
ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Deckers Outdoor Corp. ROIC improved from 2021 to 2022 and from 2022 to 2023. |
Decomposition of ROIC
Based on: 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the increase in return on invested capital (ROIC) over 2023 year is the increase in efficiency measured by turnover of capital (TO) ratio.
Operating Profit Margin (OPM)
Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||
Net operating profit after taxes (NOPAT)1 | 502,935) | 438,551) | 385,286) | 286,146) | 281,186) | 130,421) | |
Add: Cash operating taxes2 | 158,090) | 141,736) | 129,274) | 63,160) | 59,907) | 102,942) | |
Net operating profit before taxes (NOPBT) | 661,025) | 580,287) | 514,560) | 349,306) | 341,093) | 233,363) | |
Net sales | 3,627,286) | 3,150,339) | 2,545,641) | 2,132,689) | 2,020,437) | 1,903,339) | |
Add: Increase (decrease) in deferred revenue | (2,356) | 10,379) | —) | —) | —) | —) | |
Adjusted net sales | 3,624,930) | 3,160,718) | 2,545,641) | 2,132,689) | 2,020,437) | 1,903,339) | |
Profitability Ratio | |||||||
OPM3 | 18.24% | 18.36% | 20.21% | 16.38% | 16.88% | 12.26% | |
Benchmarks | |||||||
OPM, Competitors4 | |||||||
lululemon athletica inc. | 17.28% | 22.36% | 19.88% | 23.62% | 22.15% | — | |
Nike Inc. | 12.25% | 14.71% | 15.45% | 8.66% | 12.66% | 12.35% |
Based on: 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
OPM = 100 × NOPBT ÷ Adjusted net sales
= 100 × 661,025 ÷ 3,624,930 = 18.24%
4 Click competitor name to see calculations.
Profitability ratio | Description | The company |
---|---|---|
OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Deckers Outdoor Corp. OPM deteriorated from 2021 to 2022 and from 2022 to 2023. |
Turnover of Capital (TO)
Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||
Net sales | 3,627,286) | 3,150,339) | 2,545,641) | 2,132,689) | 2,020,437) | 1,903,339) | |
Add: Increase (decrease) in deferred revenue | (2,356) | 10,379) | —) | —) | —) | —) | |
Adjusted net sales | 3,624,930) | 3,160,718) | 2,545,641) | 2,132,689) | 2,020,437) | 1,903,339) | |
Invested capital1 | 1,948,548) | 1,736,074) | 1,642,284) | 1,422,595) | 1,307,197) | 1,227,436) | |
Efficiency Ratio | |||||||
TO2 | 1.86 | 1.82 | 1.55 | 1.50 | 1.55 | 1.55 | |
Benchmarks | |||||||
TO, Competitors3 | |||||||
lululemon athletica inc. | 1.80 | 1.61 | 1.21 | 1.33 | 1.34 | — | |
Nike Inc. | 2.51 | 2.21 | 2.12 | 1.96 | 2.76 | 2.39 |
Based on: 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31).
1 Invested capital. See details »
2 2023 Calculation
TO = Adjusted net sales ÷ Invested capital
= 3,624,930 ÷ 1,948,548 = 1.86
3 Click competitor name to see calculations.
Efficiency ratio | Description | The company |
---|---|---|
TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Deckers Outdoor Corp. TO improved from 2021 to 2022 and from 2022 to 2023. |
Effective Cash Tax Rate (CTR)
Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||
Net operating profit after taxes (NOPAT)1 | 502,935) | 438,551) | 385,286) | 286,146) | 281,186) | 130,421) | |
Add: Cash operating taxes2 | 158,090) | 141,736) | 129,274) | 63,160) | 59,907) | 102,942) | |
Net operating profit before taxes (NOPBT) | 661,025) | 580,287) | 514,560) | 349,306) | 341,093) | 233,363) | |
Tax Rate | |||||||
CTR3 | 23.92% | 24.43% | 25.12% | 18.08% | 17.56% | 44.11% | |
Benchmarks | |||||||
CTR, Competitors4 | |||||||
lululemon athletica inc. | 33.74% | 26.27% | 22.91% | 24.66% | 29.03% | — | |
Nike Inc. | 20.13% | 19.12% | 20.21% | 23.56% | 15.54% | 39.85% |
Based on: 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 158,090 ÷ 661,025 = 23.92%
4 Click competitor name to see calculations.
Tax rate | Description | The company |
---|---|---|
CTR | Effective cash tax rate on operating income. | Deckers Outdoor Corp. CTR decreased from 2021 to 2022 and from 2022 to 2023. |