Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Deckers Outdoor Corp., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-K (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30).
- Current Ratio
- The current ratio exhibits considerable fluctuations across the observed periods, with values ranging from a low of 2.41 to a peak of 4.37. Notably, a pronounced increase was observed in early 2019, reaching 4.37 by the first quarter of that year, followed by a general decline and stabilization near the 2.7 to 3.2 range through late 2019 to mid-2023. A resurgence is evident in the first quarter of 2023, when the ratio rose to 3.84, before slightly dropping toward the end of 2023. Overall, the ratio remains above 2.4 for most periods, indicating a consistent capacity to cover short-term liabilities with current assets.
- Quick Ratio
- The quick ratio follows a pattern somewhat parallel to the current ratio but displays more volatility. Starting at 1.55, it declined below 1.2 in certain quarters such as Q3 2018 and Q3 2019, pointing to periods with relatively lower liquid asset coverage. Sharp increases occurred in early 2019 and early 2020, achieving values above 2.5, corresponding to improved immediate liquidity. The ratio stabilizes in the range of approximately 1.6 to 2.2 in the latter years, with notable peaks at the beginning of 2023. These trends suggest fluctuations in liquid asset availability relative to current liabilities, with overall moderate liquidity.
- Cash Ratio
- The cash ratio exhibits the greatest variability among the liquidity measures, starting at 1.18 and dipping as low as 0.38 and 0.41 in mid to late 2018 and 2019. The ratio peaks above 2.3 during early 2019 and remains volatile through subsequent quarters but generally stays below the current and quick ratios. A recovery trend is observable in early 2023 when the cash ratio reaches nearly 2.0, indicating improved cash balance relative to current liabilities during that period. The ratio trends downward towards the end of 2023, falling closer to 1.0. This pattern signals varying availability of cash reserves relative to short-term obligations over time.
- Overall Insights
- Examining the three measures concurrently reveals that liquidity demonstrated significant peaks during early 2019 and early 2023, with the current and quick ratios following parallel trajectories and the cash ratio showing more volatility. Despite these fluctuations, the company consistently maintained liquidity ratios above typical risk thresholds throughout the timeframe, suggesting effective management of short-term financial obligations. However, periodic dips, notably in the cash ratio, suggest episodic reductions in cash reserves that could affect immediate liquidity. The upward trends in early 2023 across all ratios point to a temporary strengthening of the liquidity position during that period.
Current Ratio
Deckers Outdoor Corp., current ratio calculation (quarterly data)
| 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 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Current assets | 2,648,854) | 2,179,881) | 2,175,159) | 1,910,253) | 2,243,749) | 1,913,285) | 1,949,728) | 1,752,128) | 1,994,607) | 1,843,550) | 1,726,198) | 1,650,799) | 1,857,439) | 1,499,736) | 1,289,810) | 1,194,111) | 1,339,850) | 1,135,031) | 1,188,493) | 1,095,405) | 1,206,640) | 1,078,465) | 1,039,960) | |||||||
| Current liabilities | 927,442) | 759,390) | 735,804) | 497,380) | 815,306) | 728,624) | 799,758) | 541,684) | 727,930) | 682,963) | 600,533) | 468,368) | 571,850) | 503,842) | 394,998) | 300,946) | 463,158) | 465,847) | 441,745) | 250,524) | 394,387) | 448,217) | 354,591) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Current ratio1 | 2.86 | 2.87 | 2.96 | 3.84 | 2.75 | 2.63 | 2.44 | 3.23 | 2.74 | 2.70 | 2.87 | 3.52 | 3.25 | 2.98 | 3.27 | 3.97 | 2.89 | 2.44 | 2.69 | 4.37 | 3.06 | 2.41 | 2.93 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| lululemon athletica inc. | 2.32 | 2.40 | 2.43 | 2.12 | 1.99 | 1.98 | 1.91 | 1.86 | 2.07 | 2.32 | 2.34 | 2.41 | 2.19 | 1.95 | 2.68 | — | — | — | — | — | — | — | — | |||||||
| Nike Inc. | 2.74 | 2.74 | 2.87 | 2.72 | 2.73 | 2.69 | 2.64 | 2.63 | 3.06 | 3.07 | 3.19 | 2.72 | 2.78 | 2.66 | 2.55 | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-K (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30).
1 Q3 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 2,648,854 ÷ 927,442 = 2.86
2 Click competitor name to see calculations.
- Current Assets
- The current assets demonstrated a generally upward trend over the covered periods. Starting from approximately 1,039,960 thousand USD at mid-2018, the figure increased with some fluctuations, reaching around 2,648,854 thousand USD by the end of 2023. Notable increases were observed in late 2020 and late 2022, indicating periods of significant asset accumulation. However, some interim quarters showed slight declines or plateaus, suggesting occasional adjustments or seasonal effects.
- Current Liabilities
- Current liabilities exhibited considerable variability throughout the timeline. The liabilities increased from roughly 354,591 thousand USD in mid-2018 to a peak of approximately 927,442 thousand USD at the end of 2023. There were periods of sharp rises, particularly towards mid to late 2022 and late 2023, which reflect heightened obligations or possibly strategic leveraging during these intervals. Some quarters such as early 2019 and early 2023 showed notable decreases, which could indicate repayments or restructuring efforts.
- Current Ratio
- The current ratio, reflecting short-term liquidity, fluctuated between approximately 2.4 and 4.4 across the observed quarters. Early in the period, ratios were mainly above 3, indicating strong liquidity positions, with a high point near 4.37 in early 2019. The ratio showed a downward tendency around 2019 to 2021, at times nearing 2.4 to 2.7, which may suggest a tightening of liquidity or a rise in liabilities relative to assets during these periods. Starting in early 2023, the ratio again improved, peaking near 3.84, potentially indicating enhanced liquidity or improved asset management.
Quick Ratio
Deckers Outdoor Corp., quick ratio calculation (quarterly data)
| 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 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | 1,650,802) | 823,051) | 1,046,889) | 981,795) | 1,057,843) | 419,259) | 695,230) | 843,527) | 998,261) | 746,211) | 956,712) | 1,089,361) | 1,156,556) | 626,414) | 661,941) | 649,436) | 616,864) | 177,673) | 502,626) | 589,692) | 515,938) | 182,192) | 417,851) | |||||||
| Trade accounts receivable, net of allowances | 331,677) | 487,677) | 271,203) | 301,511) | 326,341) | 434,674) | 321,996) | 302,688) | 334,541) | 370,361) | 218,807) | 215,718) | 312,913) | 326,266) | 135,225) | 185,596) | 286,891) | 334,601) | 159,679) | 178,602) | 278,962) | 321,784) | 131,899) | |||||||
| Total quick assets | 1,982,479) | 1,310,728) | 1,318,092) | 1,283,306) | 1,384,184) | 853,933) | 1,017,226) | 1,146,215) | 1,332,802) | 1,116,572) | 1,175,519) | 1,305,079) | 1,469,469) | 952,680) | 797,166) | 835,032) | 903,755) | 512,274) | 662,305) | 768,294) | 794,900) | 503,976) | 549,750) | |||||||
| Current liabilities | 927,442) | 759,390) | 735,804) | 497,380) | 815,306) | 728,624) | 799,758) | 541,684) | 727,930) | 682,963) | 600,533) | 468,368) | 571,850) | 503,842) | 394,998) | 300,946) | 463,158) | 465,847) | 441,745) | 250,524) | 394,387) | 448,217) | 354,591) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Quick ratio1 | 2.14 | 1.73 | 1.79 | 2.58 | 1.70 | 1.17 | 1.27 | 2.12 | 1.83 | 1.63 | 1.96 | 2.79 | 2.57 | 1.89 | 2.02 | 2.77 | 1.95 | 1.10 | 1.50 | 3.07 | 2.02 | 1.12 | 1.55 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| lululemon athletica inc. | 0.83 | 0.88 | 0.84 | 0.86 | 0.34 | 0.48 | 0.60 | 0.95 | 0.96 | 1.25 | 1.28 | 1.37 | 0.74 | 0.75 | 1.38 | — | — | — | — | — | — | — | — | |||||||
| Nike Inc. | 1.67 | 1.63 | 1.60 | 1.60 | 1.60 | 1.57 | 1.54 | 1.65 | 1.96 | 2.13 | 2.18 | 1.85 | 1.82 | 1.75 | 1.54 | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-K (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30).
1 Q3 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,982,479 ÷ 927,442 = 2.14
2 Click competitor name to see calculations.
- Trend in Total Quick Assets
- Total quick assets exhibit notable volatility over the observed periods. Initially, there is a decline from mid-2018 to late 2018, followed by a general upward trend peaking at the end of 2020. The value rises sharply from approximately 797 million to nearly 1.47 billion US dollars during that timeframe. Subsequent quarters show some fluctuation, but the value remains relatively elevated compared to the earlier years. The most recent quarter reflects a significant surge, reaching the highest value in the series at nearly 2 billion US dollars, indicating improved liquidity capacity.
- Trend in Current Liabilities
- Current liabilities show a somewhat irregular pattern but generally increase over time. After an initial rise from mid-2018 through early 2019, the liabilities fluctuate but maintain an upward trajectory towards the end of the period. The peak level of current liabilities appears in the last quarter observed, approaching just over 927 million US dollars. This indicates an increasing obligation load, though fluctuations suggest periods of liability management or payment.
- Trend in Quick Ratio
- The quick ratio displays considerable variation but remains above 1.0 in all periods, implying that liquid assets exceed current liabilities consistently. The ratio experiences peaks in early 2019 and at the end of 2020 and early 2021, reaching values above 2.5, suggesting strong short-term liquidity at those times. Intervening quarters show declines closer to the range of 1.1 to 1.7, indicating periods of relatively tighter liquidity. Recently, the quick ratio has surged again to above 2.1, reflecting enhanced liquidity relative to current liabilities.
- Overall Liquidity Assessment
- The data reflects a company maintaining positive liquidity positions over the entire timeframe, with notable strength during the end of 2020 and again in late 2023. Despite episodes of increased current liabilities, the quick ratio's maintenance above unity implies that short-term solvency is preserved. The sharp growth in total quick assets in the most recent quarter suggests deliberate liquidity strengthening or accumulation of cash equivalents and receivables, positioning the company well to manage its current obligations.
- Business Cycle and Volatility
- The observed fluctuations in both asset and liability figures may be indicative of operational cycles, financial policy adjustments, or market conditions influencing working capital management. The spikes in quick ratio and quick assets during certain quarters suggest strategic liquidity provisioning, possibly anticipating larger expenditures or responding to funding needs. The volatility suggests attentive treasury management adapting to internal and external financial environments.
Cash Ratio
Deckers Outdoor Corp., cash ratio calculation (quarterly data)
| 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 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | 1,650,802) | 823,051) | 1,046,889) | 981,795) | 1,057,843) | 419,259) | 695,230) | 843,527) | 998,261) | 746,211) | 956,712) | 1,089,361) | 1,156,556) | 626,414) | 661,941) | 649,436) | 616,864) | 177,673) | 502,626) | 589,692) | 515,938) | 182,192) | 417,851) | |||||||
| Total cash assets | 1,650,802) | 823,051) | 1,046,889) | 981,795) | 1,057,843) | 419,259) | 695,230) | 843,527) | 998,261) | 746,211) | 956,712) | 1,089,361) | 1,156,556) | 626,414) | 661,941) | 649,436) | 616,864) | 177,673) | 502,626) | 589,692) | 515,938) | 182,192) | 417,851) | |||||||
| Current liabilities | 927,442) | 759,390) | 735,804) | 497,380) | 815,306) | 728,624) | 799,758) | 541,684) | 727,930) | 682,963) | 600,533) | 468,368) | 571,850) | 503,842) | 394,998) | 300,946) | 463,158) | 465,847) | 441,745) | 250,524) | 394,387) | 448,217) | 354,591) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Cash ratio1 | 1.78 | 1.08 | 1.42 | 1.97 | 1.30 | 0.58 | 0.87 | 1.56 | 1.37 | 1.09 | 1.59 | 2.33 | 2.02 | 1.24 | 1.68 | 2.16 | 1.33 | 0.38 | 1.14 | 2.35 | 1.31 | 0.41 | 1.18 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| lululemon athletica inc. | 0.75 | 0.80 | 0.76 | 0.77 | 0.27 | 0.41 | 0.54 | 0.90 | 0.89 | 1.19 | 1.22 | 1.30 | 0.66 | 0.69 | 1.30 | — | — | — | — | — | — | — | — | |||||||
| Nike Inc. | 1.17 | 1.10 | 1.04 | 1.15 | 1.13 | 1.04 | 1.09 | 1.21 | 1.53 | 1.71 | 1.66 | 1.39 | 1.41 | 1.33 | 1.10 | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-K (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30).
1 Q3 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,650,802 ÷ 927,442 = 1.78
2 Click competitor name to see calculations.
- Total Cash Assets
- Over the observed periods, total cash assets exhibited significant variability, with values oscillating between approximately $177 million and $1.65 billion. Initially, there was a marked decline from June 2018 to September 2018, followed by a strong recovery and an upward trend reaching a peak at the end of 2020. Subsequently, cash assets experienced fluctuations, including a notable dip around September 2022, but culminated in the highest recorded cash balance at the end of 2023. This pattern indicates periods of substantial cash accumulation interspersed with phases of cash reduction, potentially reflecting operational cycles or strategic financial decisions.
- Current Liabilities
- Current liabilities showed a generally increasing trend over the timeframe, rising from approximately $355 million in mid-2018 to levels exceeding $900 million by the end of 2023. There were intermittent decreases within certain quarters, yet the overall trajectory points toward elevating short-term obligations. The increases in current liabilities appear to be substantial in scale, especially in the latter periods, which may indicate growing operational debt or expanded short-term financial commitments.
- Cash Ratio
- The cash ratio fluctuated considerably, moving between lows of about 0.38 and highs above 2.3. Early values show moderate liquidity, followed by sharp increases to levels above 2.0, indicating strong coverage of current liabilities by cash assets. However, the ratio periodically dipped below 1.0, signaling occasions where cash was insufficient on its own to cover immediate liabilities. The most recent periods demonstrate an improved liquidity position, with the ratio rising again toward 1.78 by the end of 2023, signifying enhanced short-term financial stability.
- Summary
- The data reveals a pattern of fluctuating cash reserves amidst steadily increasing current liabilities, resulting in varying liquidity positions across the quarters. While the absolute cash assets have grown to record highs, the concurrent rise in current liabilities tempers the strength of the cash ratio. Periods of strong liquidity alternate with episodes of tighter cash coverage, emphasizing the dynamic nature of the company's working capital management. Overall, despite episodic volatility, the company appears capable of maintaining reasonable short-term liquidity, with recent improvements suggesting effective management of cash relative to current obligations.