Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Deckers Outdoor Corp., long-term (investment) activity ratios
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 analysis of long-term activity ratios reveals a divergence between the efficiency of fixed asset utilization and the overall utilization of the total asset base. While fixed asset productivity showed significant growth for much of the period, total asset and equity turnovers experienced mid-period contractions before recovering toward the end of the timeframe.
- Net Fixed Asset Turnover
- A consistent upward trend is observed from 2018 to 2022, with the ratio increasing from 8.65 to a peak of 14.16. This indicates a substantial increase in the revenue generated per unit of net fixed assets. A slight moderation occurred in 2023, with the ratio declining to 13.60, yet remaining significantly higher than the 2018 baseline.
- Net Fixed Asset Turnover (Including Operating Lease ROU Assets)
- A sharp structural decline is evident in 2020, where the ratio dropped from 9.45 to 4.71. This suggests a significant increase in the recognized value of right-of-use assets on the balance sheet. Following this drop, a recovery trend emerged, climbing to 7.78 by 2022 before settling at 7.56 in 2023.
- Total Asset Turnover
- A U-shaped trajectory is observed in total asset efficiency. The ratio declined steadily from 1.51 in 2018 to a low of 1.17 in 2021. This suggests that asset growth outpaced revenue growth during this interval. However, efficiency improved in the subsequent two years, returning to 1.42 by March 31, 2023.
- Equity Turnover
- Equity utilization followed a pattern similar to total asset turnover, decreasing from 2.02 in 2018 to 1.76 in 2021. This decline was reversed in 2022, with the ratio rising to 2.05 and remaining stable at that level through 2023, indicating an optimized relationship between shareholder equity and revenue generation.
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Net Fixed Asset Turnover
Deckers Outdoor Corp., net fixed asset turnover calculation, comparison to benchmarks
| 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) | |
| Property and equipment, net of accumulated depreciation | 266,679) | 222,449) | 206,210) | 209,037) | 213,796) | 220,162) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 13.60 | 14.16 | 12.34 | 10.20 | 9.45 | 8.65 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| lululemon athletica inc. | 6.39 | 6.74 | 5.90 | — | — | — | |
| Nike Inc. | 10.08 | 9.75 | 9.08 | — | — | — | |
| Net Fixed Asset Turnover, Sector | |||||||
| Consumer Durables & Apparel | 9.34 | 9.26 | 8.66 | — | — | — | |
| Net Fixed Asset Turnover, Industry | |||||||
| Consumer Discretionary | 3.51 | 3.48 | 3.32 | — | — | — | |
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 2023 Calculation
Net fixed asset turnover = Net sales ÷ Property and equipment, net of accumulated depreciation
= 3,627,286 ÷ 266,679 = 13.60
2 Click competitor name to see calculations.
The financial performance between 2018 and 2023 is characterized by substantial revenue growth and a significant increase in the efficiency of fixed asset utilization. Net sales exhibited a consistent upward trajectory, increasing from 1.9 billion US dollars in 2018 to approximately 3.6 billion US dollars in 2023.
- Net Sales Expansion
- A steady increase in net sales is observed throughout the period, with a notable acceleration in growth occurring between 2021 and 2023. This growth suggests a successful scaling of operations and market penetration.
- Fixed Asset Investment Patterns
- Net property and equipment remained relatively stable, showing a slight downward trend from 2018 to 2021. However, a strategic increase in capital investment occurred in 2022 and 2023, with net fixed assets rising to 266.7 million US dollars by the end of the period.
- Net Fixed Asset Turnover Efficiency
- The net fixed asset turnover ratio improved significantly from 8.65 in 2018 to a peak of 14.16 in 2022. This indicates that the company successfully increased its revenue generation capacity without requiring proportional increases in fixed assets for several years. The marginal decline to 13.60 in 2023 is attributable to the increased investment in property and equipment, which outpaced the rate of sales growth in the final year of the analysis.
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Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Deckers Outdoor Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| 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) | |
| Property and equipment, net of accumulated depreciation | 266,679) | 222,449) | 206,210) | 209,037) | 213,796) | 220,162) | |
| Operating lease assets | 213,302) | 182,459) | 186,991) | 243,522) | —) | —) | |
| Property and equipment, net of accumulated depreciation (including operating lease, right-of-use asset) | 479,981) | 404,908) | 393,201) | 452,559) | 213,796) | 220,162) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 7.56 | 7.78 | 6.47 | 4.71 | 9.45 | 8.65 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| lululemon athletica inc. | 3.62 | 3.61 | 2.97 | — | — | — | |
| Nike Inc. | 6.40 | 6.05 | 5.56 | — | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Consumer Durables & Apparel | 5.79 | 5.61 | 5.15 | — | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Consumer Discretionary | 2.69 | 2.66 | 2.52 | — | — | — | |
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 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property and equipment, net of accumulated depreciation (including operating lease, right-of-use asset)
= 3,627,286 ÷ 479,981 = 7.56
2 Click competitor name to see calculations.
Net sales exhibited a consistent upward trajectory from 2018 through 2023, increasing from $1.90 billion to $3.63 billion. This sustained growth indicates a significant expansion in the scale of operations and revenue generation over the analyzed period.
- Fixed Asset Investment Trends
- The asset base, including right-of-use assets from operating leases, remained relatively stable between 2018 and 2019. However, a substantial increase occurred in 2020, where assets rose from $213.8 million to $452.6 million. Following this surge, the asset base experienced a slight contraction in 2021 before trending upward again to reach $479.9 million by 2023.
- Net Fixed Asset Turnover Volatility
- The net fixed asset turnover ratio showed significant fluctuation, peaking at 9.45 in 2019 before dropping sharply to 4.71 in 2020. This decline corresponds directly with the rapid expansion of the fixed asset base, suggesting that the investment in assets and lease obligations initially outpaced the growth in net sales.
- Operational Efficiency Recovery
- A recovery phase is observed from 2021 through 2023, with the turnover ratio improving to 6.47 in 2021 and peaking at 7.78 in 2022. The ratio concluded the period at 7.56 in 2023. This trend indicates that the company has effectively leveraged its expanded asset base to support higher sales volumes, restoring a level of operational efficiency closer to historical norms despite the larger capital footprint.
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Total Asset Turnover
Deckers Outdoor Corp., total asset turnover calculation, comparison to benchmarks
| Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net sales | 3,627,286) | 3,150,339) | 2,545,641) | 2,132,689) | 2,020,437) | 1,903,339) | |
| Total assets | 2,556,203) | 2,332,250) | 2,167,705) | 1,765,118) | 1,427,206) | 1,264,379) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 1.42 | 1.35 | 1.17 | 1.21 | 1.42 | 1.51 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| lululemon athletica inc. | 1.45 | 1.27 | 1.05 | — | — | — | |
| Nike Inc. | 1.36 | 1.16 | 1.18 | — | — | — | |
| Total Asset Turnover, Sector | |||||||
| Consumer Durables & Apparel | 1.38 | 1.17 | 1.17 | — | — | — | |
| Total Asset Turnover, Industry | |||||||
| Consumer Discretionary | 0.97 | 0.96 | 0.88 | — | — | — | |
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 2023 Calculation
Total asset turnover = Net sales ÷ Total assets
= 3,627,286 ÷ 2,556,203 = 1.42
2 Click competitor name to see calculations.
A comprehensive analysis of the investment activity ratios reveals a period of fluctuating asset efficiency despite robust and consistent top-line growth from 2018 to 2023.
- Net Sales Growth
- Revenue demonstrated a continuous upward trend, increasing from US$1,903,339 thousand in 2018 to US$3,627,286 thousand in 2023. This indicates a strong expansion in sales volume throughout the observed period.
- Total Asset Expansion
- Total assets grew steadily from US$1,264,379 thousand in 2018 to US$2,556,203 thousand in 2023. The asset base expanded to support the increasing scale of operations, with a significant increase observed between 2020 and 2021.
- Total Asset Turnover Trend
- The total asset turnover ratio followed a U-shaped trajectory, declining from 1.51 in 2018 to a trough of 1.17 in 2021. This initial contraction indicates that asset accumulation outpaced revenue growth during this timeframe. Subsequently, a recovery phase occurred, with the ratio ascending to 1.35 in 2022 and 1.42 in 2023, signaling an improvement in the efficiency of asset utilization to generate sales.
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Equity Turnover
Deckers Outdoor Corp., equity turnover calculation, comparison to benchmarks
| Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net sales | 3,627,286) | 3,150,339) | 2,545,641) | 2,132,689) | 2,020,437) | 1,903,339) | |
| Stockholders’ equity | 1,765,733) | 1,538,825) | 1,444,225) | 1,140,120) | 1,045,130) | 940,779) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 2.05 | 2.05 | 1.76 | 1.87 | 1.93 | 2.02 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| lululemon athletica inc. | 2.58 | 2.28 | 1.72 | — | — | — | |
| Nike Inc. | 3.66 | 3.06 | 3.49 | — | — | — | |
| Equity Turnover, Sector | |||||||
| Consumer Durables & Apparel | 3.46 | 2.94 | 3.19 | — | — | — | |
| Equity Turnover, Industry | |||||||
| Consumer Discretionary | 3.82 | 4.14 | 3.70 | — | — | — | |
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 2023 Calculation
Equity turnover = Net sales ÷ Stockholders’ equity
= 3,627,286 ÷ 1,765,733 = 2.05
2 Click competitor name to see calculations.
An analysis of the financial performance from fiscal year 2018 through 2023 reveals a consistent expansion in both top-line revenue and the equity base. While net sales grew steadily throughout the period, the efficiency of equity utilization experienced a period of moderate decline before rebounding and stabilizing at a higher level by 2023.
- Net Sales Performance
- Net sales demonstrated an uninterrupted upward trend, increasing from approximately 1.90 billion US$ in 2018 to 3.63 billion US$ in 2023. A significant acceleration in growth is observable starting in 2021, with the most substantial year-over-year increases occurring between 2021 and 2023.
- Stockholders' Equity Growth
- The equity base grew steadily from 940.8 million US$ in 2018 to 1.77 billion US$ in 2023. This consistent increase indicates a strengthening of the balance sheet, likely driven by the accumulation of retained earnings over the six-year period.
- Equity Turnover Dynamics
- The equity turnover ratio followed a U-shaped trajectory. From 2018 to 2021, the ratio declined from 2.02 to 1.76, indicating that the growth in stockholders' equity temporarily outpaced the growth in net sales. However, a recovery occurred in 2022, with the ratio increasing to 2.05 and maintaining that level into 2023. This suggests a return to improved operational efficiency, where the company is once again generating higher volumes of sales relative to its invested equity.
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