Name: Deckers Outdoor Corp. (NYSE:DECK) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Deckers Outdoor Corp., consolidated cash flow statement

US$ in thousands

12 months ended:	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018
Net income	516,822)	451,949)	382,575)	276,142)	264,308)	114,394)
Depreciation, amortization, and accretion	47,858)	42,878)	40,530)	38,912)	44,941)	48,572)
Amortization on cloud computing arrangements	2,149)	1,552)	737)	—)	—)	—)
Loss on extinguishment of debt	226)	—)	—)	—)	447)	—)
Bad debt expense (benefit)	1,983)	(342)	3,053)	3,498)	2,849)	4,168)
Deferred tax expense (benefit)	(9,719)	(27,796)	(8,171)	2,934)	6,939)	8,138)
Stock-based compensation	26,897)	26,816)	22,701)	14,477)	14,774)	14,302)
Loss on disposal of long-lived assets	2,691)	107)	1,019)	698)	277)	387)
Impairment of intangible assets	—)	—)	3,522)	—)	—)	—)
Impairment of operating lease and other long-lived assets	2,817)	3,186)	14,084)	1,365)	180)	2,417)
Restructuring charges	—)	—)	—)	—)	295)	1,667)
Gain on settlement of asset retirement obligations	—)	—)	(207)	(705)	—)	—)
Trade accounts receivable, net	(806)	(86,627)	(33,173)	(10,493)	(16,157)	10,770)
Inventories	(26,056)	(228,554)	33,378)	(32,777)	8,827)	(751)
Prepaid expenses and other current assets	(5,609)	(19,095)	(22,128)	2,477)	(515)	11,124)
Income tax receivable	13,459)	(11,933)	1,842)	(5,811)	(165)	26,999)
Net operating lease assets and lease liabilities	(8,308)	3,189)	250)	(3,264)	—)	—)
Other assets	13,240)	(28,296)	(3,103)	(6,558)	2,630)	(1,714)
Trade accounts payable	(74,247)	89,184)	79,176)	23,312)	31,035)	(2,184)
Other accrued expenses	11,528)	(20,370)	53,785)	(11,112)	(7,160)	28,627)
Income tax payable	4,897)	(24,494)	25,817)	(8,179)	3,809)	(1,693)
Other long-term liabilities	17,600)	999)	530)	1,418)	2,191)	62,128)
Changes in operating assets and liabilities	(54,302)	(325,997)	136,374)	(50,987)	24,495)	133,306)
Reconciliation of net income to net cash provided by operating activities	20,600)	(279,596)	213,642)	10,192)	95,197)	212,957)
Net cash provided by operating activities	537,422)	172,353)	596,217)	286,334)	359,505)	327,351)
Purchases of property and equipment	(81,025)	(51,017)	(32,218)	(32,455)	(29,086)	(34,813)
Proceeds from sales of property and equipment	12)	8)	49)	491)	68)	116)
Net cash used in investing activities	(81,013)	(51,009)	(32,169)	(31,964)	(29,018)	(34,697)
Proceeds from short-term borrowings	—)	—)	9,100)	69,336)	162,001)	214,751)
Repayments of short-term borrowings	—)	—)	(9,478)	(69,197)	(161,621)	(214,889)
Debt issuance costs on short-term borrowings	—)	—)	—)	—)	(1,297)	—)
Loan origination costs on revolving credit facilities	(1,537)	—)	—)	—)	—)	—)
Proceeds from issuance of stock	2,170)	1,991)	1,502)	1,288)	1,024)	765)
Proceeds from exercise of stock options	4,396)	1,204)	6,775)	3,615)	—)	—)
Repurchases of common stock	(297,372)	(356,653)	(99,147)	(190,405)	(161,395)	(149,687)
Cash paid for shares withheld for taxes	(16,688)	(14,024)	(7,432)	(6,148)	(5,328)	(8,105)
Repayments of mortgage principal	—)	—)	(30,901)	(603)	(578)	(550)
Net cash used in financing activities	(309,031)	(367,482)	(129,581)	(192,114)	(167,194)	(157,715)
Effect of foreign currency exchange rates on cash and cash equivalents	(9,110)	304)	5,458)	(2,512)	(3,571)	3,267)
Net change in cash and cash equivalents	138,268)	(245,834)	439,925)	59,744)	159,722)	138,206)
Cash and cash equivalents at beginning of period	843,527)	1,089,361)	649,436)	589,692)	429,970)	291,764)
Cash and cash equivalents at end of period	981,795)	843,527)	1,089,361)	649,436)	589,692)	429,970)

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).

The financial performance over the six-year period from 2018 to 2023 is characterized by a consistent and substantial increase in profitability, paired with an aggressive capital return strategy and fluctuating working capital requirements.

Operating Performance and Cash Generation: Net income exhibited a strong upward trajectory, growing from 114.4 million US dollars in 2018 to 516.8 million US dollars in 2023. This growth translated into generally robust net cash provided by operating activities, which peaked at 596.2 million US dollars in 2021. However, a significant volatility is observed in the reconciliation of net income to operating cash flow, particularly in 2022, where a substantial negative adjustment of 279.6 million US dollars occurred despite strong net income.
Working Capital Dynamics: Management of operating assets and liabilities showed significant variance. A notable trend is the volatility in inventory levels; specifically, in 2022, a cash outflow of 228.6 million US dollars was recorded for inventories, representing a major drain on liquidity for that period. Trade accounts payable also showed significant swings, with a large increase in 2021 and 2022 followed by a substantial decrease of 74.2 million US dollars in 2023, indicating a shift in payment timing or supplier terms.
Investment and Capital Expenditure: There is a clear trend of increasing investment in infrastructure. Purchases of property and equipment rose steadily from 34.8 million US dollars in 2018 to 81.0 million US dollars in 2023. This acceleration in capital expenditure suggests an expansion of physical capacity or operational capabilities to support the growth in net income.
Financing and Shareholder Returns: Financing activities are consistently negative, driven primarily by an aggressive share repurchase program. Repurchases of common stock remained a priority throughout the period, with expenditures ranging from 99.1 million US dollars in 2021 to a peak of 356.7 million US dollars in 2022. The company has effectively utilized its operating cash flow to reduce outstanding shares, while relying minimally on new equity issuance.
Liquidity Position: The overall cash and cash equivalents position grew from 291.8 million US dollars at the start of the 2018 period to 981.8 million US dollars by the end of March 2023. Despite the heavy outflows for share repurchases and increased capital expenditures, the company maintained a strong liquidity cushion, supported by the consistent growth in net income and operating cash flows.

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