Deckers Outdoor Corp. (NYSE:DECK)

Current Income Tax Expense

The current income tax expense exhibited noticeable fluctuations over the six-year period. Starting at $98,164 thousand in 2018, it experienced a significant decline to $57,687 thousand in 2019, followed by a slight increase to $61,790 thousand in 2020. From 2021 onwards, there was a consistent upward trend, reaching $127,110 thousand in 2021, $140,485 thousand in 2022, and ultimately peaking at $158,979 thousand in 2023. This pattern indicates a recovery and growth in the current tax obligations after the initial drop in 2019.

Deferred Income Tax Expense

The deferred income tax expense showed a contrasting trend compared to the current tax expense. It began at $8,138 thousand in 2018 and gradually decreased over the next two years, reaching $2,934 thousand in 2020. Starting in 2021, the deferred expense turned negative, recording -$8,171 thousand, which represents a deferred tax benefit rather than an expense. This negative trend deepened in 2022 to -$27,796 thousand and slightly lessened to -$9,719 thousand in 2023. This shift suggests changes in deferred tax liabilities or assets, possibly influenced by adjustments in tax rates, timing differences, or tax planning strategies during these years.

Total Income Tax Expense

The total income tax expense, a sum of current and deferred amounts, illustrated fluctuating movements aligned with the individual components. It started at $106,302 thousand in 2018 and dropped almost by half to $64,626 thousand in 2019, where it remained relatively stable in 2020 at $64,724 thousand. In 2021, the total tax expense rose substantially to $118,939 thousand, followed by a slight decline to $112,689 thousand in 2022. By 2023, the expense increased markedly again to $149,260 thousand. The reduction in deferred taxes during later years moderated the impact of the rising current tax expense on the total tax liability.

Summary

Overall, the financial data reveals divergent trends between current and deferred income tax expenses, contributing to nuanced changes in the total income tax expense over time. The current tax expense showed recovery and growth after an initial decrease, while the deferred tax expense shifted from a positive expense to a significant tax benefit starting in 2021. These movements imply underlying operational or fiscal changes affecting tax calculation and timing, which merit further investigation to understand their causes and future implications.

Statutory Federal Income Tax Rate

The statutory federal income tax rate remained constant at 21% from March 31, 2019, through March 31, 2023, following a decrease from 31.52% in the fiscal year ending March 31, 2018. This indicates a regulatory or policy shift that stabilized the tax rate at the lower level for the subsequent years.

Effective Income Tax Rate

The effective income tax rate demonstrated greater variability compared to the statutory rate. In the fiscal year ending March 31, 2018, the rate was notably higher at 48.17%, then sharply declined to around 19-20% in the years 2019 and 2020. It rose to approximately 23.72% in 2021 before decreasing again to 19.96% in 2022 and increasing to 22.41% in 2023. This fluctuation suggests that factors such as tax planning, temporary differences, credits, or one-time items materially influenced the effective rate, causing it to diverge from the statutory rate over the analyzed period.

Overall Trends and Insights

Overall, the statutory tax rate stabilization provided a consistent benchmark after 2018. However, the effective tax rate did not consistently align with this statutory figure, reflecting variable underlying tax impacts affecting the company’s tax expense. The effective rate's initial sharp decline and subsequent fluctuations imply ongoing adjustments or changes in the company's taxable income composition or tax management strategies. The data indicates that while statutory tax obligations remained stable, the actual tax burden experienced by the company was subject to changes in financial or tax conditions over the years.

Amortization of Intangible Assets

The amortization expense shows a general downward trend from 18,261 thousand US$ in 2018 to 4,828 thousand US$ in 2022, followed by a sharp increase to 16,788 thousand US$ in 2023. This suggests initial reductions in intangible asset amortization with a substantial rise in the latest year, possibly due to new intangible assets being capitalized or a change in amortization policy.

Deferred Rent Obligations

Deferred rent obligations decreased slightly from 5,452 thousand US$ in 2018 to 4,899 thousand US$ in 2019, with data unavailable thereafter, indicating possible reclassification or elimination of this liability in subsequent reporting periods.

Operating Lease Liabilities

Operating lease liabilities emerged in 2020 at 45,600 thousand US$, then declined annually until 2022 before a modest increase in 2023. This pattern may reflect adoption of new lease accounting standards followed by lease portfolio adjustments or renewals.

Uniform Capitalization Adjustment to Inventory

This adjustment has steadily increased from 3,212 thousand US$ in 2018 to 13,823 thousand US$ in 2023, indicating a growing amount of capitalized costs included in inventory, which may reflect expansion or higher production costs being capitalized.

Reserves and Accruals

There is a consistent upward trend in reserves and accruals, rising from 24,539 thousand US$ in 2018 to 48,949 thousand US$ in 2023, suggesting increased provisions or estimated liabilities that may indicate cautious financial management or higher expense recognition.

Net Operating Loss Carry-forwards

Net operating loss carry-forwards generally increased over the years, nearly doubling from 863 thousand US$ in 2018 to 3,477 thousand US$ in 2023, with some fluctuations. This suggests utilization of tax benefits from past losses is increasing.

Deferred Revenue

Deferred revenue appears starting 2021 with 817 thousand US$, spikes sharply to 22,074 thousand US$ in 2022, then declines to 7,924 thousand US$ in 2023. This indicates significant fluctuations in advance payments or unearned revenue during these years.

Other (First Occurrence)

Values fluctuate without a clear trend, starting at 1,279 thousand US$ in 2018, peaking at 2,877 thousand US$ in 2021, and then declining to 1,070 thousand US$ in 2023, indicating variable miscellaneous financial items.

Gross Deferred Tax Assets

Gross deferred tax assets increased substantially over the period, nearly doubling from 53,606 thousand US$ in 2018 to 130,704 thousand US$ in 2023, reflecting accumulating temporary differences or enhanced tax credit recognition.

Valuation Allowances

Valuation allowances have been relatively stable and negative since 2019, ranging between -195 thousand and -1,519 thousand US$, suggesting modest and consistent reserves against deferred tax assets due to potential non-realization.

Deferred Tax Assets

Deferred tax assets net of valuation allowances closely mirror gross figures, increasing from 53,606 thousand US$ in 2018 to 129,480 thousand US$ in 2023, confirming growth in tax-effected temporary differences.

Prepaid Expenses

Prepaid expenses show increasing negative balances across the years, moving from -2,686 thousand US$ in 2018 to -6,930 thousand US$ in 2023, suggesting growing advance payments or adjustments in prepaid asset recognition.

Operating Lease Assets

Operating lease assets appear from 2020 onward with negative balances, decreasing in magnitude from -41,276 thousand US$ in 2020 to -31,250 thousand US$ in 2023, indicating recognition of right-of-use assets that have been gradually amortized or reduced.

Depreciation of Property and Equipment

Depreciation expense increased from -9,638 thousand US$ in 2018 to a peak of -21,924 thousand US$ in 2022, before declining to -18,708 thousand US$ in 2023. This increase suggests asset base growth, followed by a slight reduction in the latest year.

Other (Second Occurrence)

Data only available for 2018 at -2,901 thousand US$, without further information to establish a trend.

Deferred Tax Liabilities

Deferred tax liabilities increased in absolute value from -15,225 thousand US$ in 2018 to around -56,888 thousand US$ in 2023, indicating growing temporary differences resulting in future taxable amounts.

Deferred Tax Assets (Liabilities), Net

This net figure, combining assets and liabilities, decreased initially from 38,381 thousand US$ in 2018 to a trough of 28,233 thousand US$ in 2020, then rose notably to 72,592 thousand US$ by 2023, reflecting increasing net deferred tax asset position in recent years.

The analysis of deferred tax assets, net, over the six-year period reveals several notable trends and fluctuations.

Initial decline (2018 to 2020)

The value of deferred tax assets experienced a decrease from 38,381 thousand US dollars in 2018 to 28,233 thousand US dollars in 2020. This represents a reduction of approximately 26% over two years, suggesting a contraction in the company's recognized future tax benefits during this period.

Rebound and growth (2020 to 2023)

From 2020 onward, there was a significant upward trend in deferred tax assets, increasing from 28,233 thousand US dollars to 72,592 thousand US dollars by 2023. This more than doubles the 2020 figure, indicating an enhanced recognition or realization of tax benefits potentially attributable to changes in profitability, tax strategies, or accounting adjustments during these years.

Year-over-year changes

Notably, the largest year-over-year increase occurred between 2021 and 2022, when deferred tax assets rose from 37,194 to 64,217 thousand US dollars, reflecting a substantial increase of about 73%. This sharp rise could be linked to significant operational developments or shifts in tax planning.

Overall, the deferred tax assets reflect an initial period of decline followed by a strong recovery and growth, indicating evolving tax positions or financial circumstances impacting future tax deductions or credits.

The financial data from the annual periods ending March 31, 2018 through March 31, 2023 demonstrate consistent growth across all reported and adjusted metrics, indicating positive trends in the company's financial status.

Total Assets

Reported total assets increased steadily from approximately $1.26 billion in 2018 to about $2.56 billion in 2023. The adjusted total assets mirrored this trend, growing from approximately $1.23 billion in 2018 to approximately $2.48 billion in 2023. This reflects a near doubling of asset base over the five-year period, signifying expansion or reinvestment in asset holdings.

Stockholders’ Equity

Reported stockholders’ equity rose from $941 million in 2018 to around $1.77 billion in 2023. Adjusted equity values followed a similar pattern, increasing from about $902 million to $1.69 billion over the same period. The substantial growth in equity indicates strengthening net worth and potentially enhanced financial stability.

Net Income

Reported net income showed substantial growth from approximately $114 million in 2018 to approximately $517 million in 2023. Adjusted net income, slightly higher than the reported figures in all years, increased from about $123 million to $507 million over the same timeline. The margins of adjustment appear to be consistent, reflecting stable differences attributable to tax-related adjustments. The steady increase in net income suggests improved profitability and operational efficiency.

Overall, the data reveal a pattern of robust financial growth characterized by expanding asset base, solidifying equity position, and increasing profitability. The adjustments for reported versus adjusted figures are consistently proportionate, indicating no significant anomalies in tax-related accounting treatment during the analyzed periods.

The financial performance indicators for the periods analyzed demonstrate noteworthy trends in profitability, asset efficiency, leverage, and returns.

Net Profit Margin

The reported net profit margin showed a significant increase from 6.01% in 2018 to a peak of 15.03% in 2021, followed by a slight decrease to 14.25% in 2023. Adjusted net profit margin trends were similar but slightly higher, peaking at 14.71% in 2021 and standing at 13.98% in 2023. This indicates consistent profitability improvement with a mild tapering in recent years.

Total Asset Turnover

Reported asset turnover declined steadily from 1.51 in 2018 to 1.17 in 2021, reflecting a decrease in asset utilization. However, asset turnover improved in 2022 and 2023 to 1.35 and 1.42, respectively. Adjusted figures follow this same pattern, suggesting enhanced operational efficiency regained after a period of decline.

Financial Leverage

The leverage ratio rose from 1.34 in 2018 to a high of 1.56 in 2020 before slightly declining to 1.45 in 2023. Adjusted leverage aligns closely, indicating the company increased its use of debt or equity financing until 2020, followed by a moderate reduction.

Return on Equity (ROE)

ROE exhibited strong growth from 12.16% in 2018 to almost 30% in 2023, with a noticeable jump between 2018 and 2019. Adjusted ROE remained consistently above reported values, peaking at 29.95% in 2023, which reflects effective use of shareholders’ equity to generate profit.

Return on Assets (ROA)

ROA increased markedly from 9.05% in 2018 to 20.22% in 2023 reported figures, demonstrating improved asset profitability. Adjusted ROA showed a similar upward trend, reaching 20.42% in 2023. This suggests overall stronger asset performance and better profit generation capacity over time.

In summary, the data reveals an overall positive trajectory in profitability ratios and returns, despite some short-term fluctuations in asset turnover and financial leverage. The adjustments consistently show marginally better performance metrics, implying the influence of income tax and other adjustments on the reported financial outcomes. The company has managed to enhance both operational efficiency and capital utilization over the years under review.

Reported Net Income

Reported net income demonstrated a consistent upward trend over the six-year period. Beginning at 114,394 thousand USD in 2018, the figure more than quadrupled to reach 516,822 thousand USD by 2023. This steady increase suggests sustained profitability growth and efficient operational performance.

Adjusted Net Income

The adjusted net income followed a similarly positive trajectory, starting at 122,532 thousand USD in 2018 and rising to 507,103 thousand USD in 2023. The adjusted figures are consistently slightly higher than the reported net income, indicating the exclusion of certain non-recurring or non-operational items to reflect an operational perspective.

Reported Net Profit Margin

The reported net profit margin increased significantly from 6.01% in 2018 to 15.03% in 2021. After peaking in 2021, it experienced a minor decline, stabilizing around 14.25% by 2023. This margin expansion over the early years points to enhanced efficiency, cost control, or pricing power, with margins remaining strong in the most recent years.

Adjusted Net Profit Margin

Adjusted net profit margin also displayed growth from 6.44% in 2018 to a peak of 14.71% in 2021. However, it showed a slight downward trend thereafter, settling at 13.98% by 2023. The margin trend closely parallels the reported margin, underscoring consistent improvements in underlying profitability after adjustments.

Overall Insights

The data reveal robust financial performance over the six-year period with strong growth in both net income and profitability margins. The margins peaked around 2021 before experiencing a slight contraction, which may warrant further analysis to understand margin pressures or changes in cost structures. The close alignment between reported and adjusted figures suggests the adjustments had a moderate impact on profitability representation. Overall, the company demonstrated sustained earnings growth alongside stable profit margins indicative of effective financial management.

The analysis of the annual reported and deferred income tax adjusted financial data reveals several notable trends related to the company's assets and efficiency over the examined six-year period.

Total Assets

The reported total assets have consistently increased each year, growing from approximately 1.26 billion USD in 2018 to about 2.56 billion USD in 2023. This represents more than a doubling of reported assets over the period, indicating significant asset growth.

The adjusted total assets, which account for deferred income tax adjustments, follow a similar upward trajectory, rising from roughly 1.23 billion USD in 2018 to about 2.48 billion USD in 2023. This parallel growth suggests that the adjustments do not materially alter the overall asset expansion trend.

Total Asset Turnover Ratios

The reported total asset turnover shows a declining trend initially, decreasing from 1.51 in 2018 to a low of 1.17 in 2021. This decline suggests a reduction in how efficiently the company generated revenue from its assets during this period. However, from 2021 onward, the turnover ratio improved, reaching 1.42 in 2023, signaling a recovery in asset utilization efficiency.

The adjusted total asset turnover mirrors the reported ratio's pattern but consistently exhibits slightly higher values. Starting at 1.55 in 2018, it decreases to 1.19 by 2021 and then improves to 1.46 by 2023. The higher adjusted ratios imply that deferred income tax adjustments positively influence the asset turnover measure, potentially reflecting operational efficiency more accurately.

Overall, the data indicates a company experiencing strong and steady growth in asset base, accompanied by a temporary dip in asset efficiency that begins to recover in the final years examined. The presence of deferred income tax adjustments slightly enhances the perception of asset turnover efficiency, but the general trends remain consistent across both reported and adjusted figures.

The financial data over the six-year period demonstrates consistent growth in the company's asset base and equity, alongside fluctuations in financial leverage ratios.

Total Assets

Reported total assets increased steadily from 1,264,379 thousand US dollars in 2018 to 2,556,203 thousand US dollars in 2023, representing an overall growth of approximately 102%. Similarly, adjusted total assets followed the same upward trajectory, rising from 1,225,998 thousand US dollars in 2018 to 2,483,611 thousand US dollars in 2023. The parallel trend between reported and adjusted figures indicates relatively minor adjustments for tax effects over the periods.

Stockholders’ Equity

Reported stockholders’ equity also showed robust growth, moving from 940,779 thousand US dollars to 1,765,733 thousand US dollars across the six years, an increase of about 88%. Adjusted stockholders’ equity mirrored this pattern, increasing from 902,398 thousand US dollars to 1,693,141 thousand US dollars. This steady accumulation of equity reflects stronger capitalization and retention of earnings over the timeframe.

Financial Leverage

Reported financial leverage exhibited an upward trend from 1.34 in 2018 to a peak of 1.55 in 2020, indicating an increased use of debt relative to equity during this period. After 2020, the ratio moderated slightly, declining to 1.45 by 2023. Adjusted financial leverage followed a similar pattern, with a peak of 1.56 in 2020 before decreasing to 1.47 in 2023. The rise and subsequent decline in leverage suggest a phase of heightened leverage acquisition followed by moderate deleveraging or equity growth in recent years.

In summary, the data indicate consistent expansion in asset and equity bases, along with a temporary increase in leverage that subsided moderately after reaching its highest point in 2020. Adjusted values are closely aligned with reported figures, suggesting limited impact of tax-related adjustments on these key financial metrics.

The financial data exhibits several notable trends over the six-year period ending in March 2023. Both reported and adjusted net income demonstrate consistent growth, with reported net income increasing from $114.4 million in 2018 to $516.8 million in 2023. Adjusted net income follows a similar upward trajectory, rising from $122.5 million to $507.1 million within the same timeframe. This steady increase indicates strong profitability improvement over the period.

Stockholders' equity, both reported and adjusted, also shows substantial growth. Reported equity increased from approximately $940.8 million in 2018 to $1.77 billion in 2023. Adjusted equity follows a comparable trend, moving from about $902.4 million to $1.69 billion. This indicates a strengthening financial position and increased capitalization over the years.

Return on equity (ROE) figures, both reported and adjusted, reflect enhancing efficiency in generating profits from equity. Reported ROE rose from 12.16% in 2018 to peak near 29.37% in 2022, with a slight decline to 29.27% in 2023. Adjusted ROE similarly improves, starting at 13.58% and reaching 29.95% in 2023. The generally rising ROE suggests improved management effectiveness and profitable deployment of shareholder capital.

Net Income Trends

Both reported and adjusted net income exhibit consistent year-over-year increases without interruption. The reported net income nearly quintuples over six years, reflecting significant growth in earnings capacity.

Stockholders' Equity Trends

The growth in both reported and adjusted equity shows a strong upward momentum, nearly doubling during the period. This expansion supports the increased net income and suggests reinvestment or retained earnings contributing to equity accumulation.

Return on Equity Analysis

ROE improvements for both reported and adjusted data emphasize the company’s effective use of equity to generate profits. Although a slight dip in reported ROE occurs in 2023, adjusted ROE maintains a marginally higher level, indicating that adjustments for deferred income tax effects result in a slightly stronger profitability perspective.

Overall, the data indicates a healthy, growing financial profile characterized by expanding earnings, increasing equity base, and improving profitability efficiency over the years in question. The adjustments related to deferred income taxes marginally enhance both net income and ROE, providing a more favorable measure of performance.

The analyzed financial data reveals several notable trends in the performance and assets of the company over the six-year period ending March 31, 2023.

Net Income

Reported net income shows a consistent upward trajectory from 114,394 thousand USD in 2018 to 516,822 thousand USD in 2023, representing a cumulative increase of over 350%. Adjusted net income follows a similar pattern, exhibiting growth from 122,532 thousand USD to 507,103 thousand USD over the same period. Although adjusted net income values are marginally higher than reported figures in the early years, by 2023, the reported figure slightly exceeds the adjusted, indicating variations in adjustment impact over time.

Total Assets

Reported total assets rose steadily from 1,264,379 thousand USD in 2018 to 2,556,203 thousand USD in 2023, reflecting robust asset growth. Adjusted total assets also increased in a consistent manner, from 1,225,998 thousand USD to 2,483,611 thousand USD. The adjusted asset values remain slightly lower than reported assets across all years, suggesting certain deferred income tax or accounting adjustments affect total asset valuation modestly.

Return on Assets (ROA)

Reported ROA improved markedly from 9.05% in 2018 to 20.22% in 2023, more than doubling over the timeframe. Adjusted ROA mirrors this positive trend, rising from 9.99% to 20.42%. Both metrics suggest increasing efficiency in generating earnings from asset bases, with adjusted ROA consistently higher but converging towards reported ROA in later years. The relatively steady growth of ROA indicates sustained profitability enhancements relative to asset expansion.

Overall, the data illustrates strong financial growth, with net income and asset bases expanding significantly. The increase in ROA suggests that the company has managed to leverage its asset growth to enhance profitability effectively. Adjusted figures, which account for deferred income taxes, generally show slightly higher profitability and asset values closer to reported numbers over time, highlighting the improving operational results net of tax timing effects.