Deckers Outdoor Corp. (NYSE:DECK)

Income from Operations

The income from operations for the segment exhibited an overall upward trend from 2018 to 2020, increasing from $247.8 million in 2018 to $303.9 million in 2020. It slightly declined to $292.7 million in 2021, surged again to a peak of $315.2 million in 2022, before decreasing noticeably to $267.0 million in 2023. This suggests some fluctuations in operational efficiency and profitability, with a significant drop in the most recent year.

Net Sales

Net sales showed steady growth from 2018 through 2020, rising from $841.9 million to $893.0 million. There was a slight decline in 2021 to $871.8 million, followed by a substantial increase to $1.09 billion in 2022. However, sales declined again in 2023 to approximately $1.00 billion. The data reflect variability in sales performance, with a strong rebound in 2022 that was not sustained in the subsequent year.

Segment Profit Margin

The segment profit margin improved consistently from 29.44% in 2018 to a high of 34.03% in 2020, indicating enhanced profitability relative to sales. It decreased slightly in 2021 to 33.58%, then dropped more sharply in 2022 and 2023 to 28.97% and 26.59%, respectively. This downward trend in more recent years suggests increased costs or pricing pressures adversely affecting profitability.

Summary Insights

The segment demonstrated growth in both income and sales through 2020, supported by rising profit margins. Starting in 2021, however, income from operations and profit margins began to decline, despite a peak in net sales in 2022. The reduced profit margin combined with falling income in 2023 indicates challenges in maintaining operational efficiency or managing expenses. The fluctuations in sales and profitability metrics highlight a period of volatility, possibly influenced by external market conditions or internal factors affecting cost management and revenue stability.

Income (loss) from operations

There is a clear upward trend in income from operations over the observed period. Starting at 20,954 thousand US dollars in 2018, it increased moderately to 35,717 thousand in 2019, followed by a significant rise to 61,860 thousand in 2020. The growth accelerates further, reaching 111,208 thousand in 2021, 155,344 thousand in 2022, and peaking at 285,257 thousand in 2023. This consistent increase indicates improving operational efficiency and profitability in the segment.

Net sales

Net sales show a strong and continuous growth trajectory from 132,688 thousand US dollars in 2018 to 925,877 thousand in 2023. The growth rate appears to accelerate after 2019, with particularly sharp increases between 2020 and 2021, and again from 2021 onward. This substantial increase in sales revenue demonstrates expanding market demand and broader sales activities within the segment.

Segment profit margin

The segment profit margin exhibits a generally positive trend from 15.79% in 2018 to 30.81% in 2023. There is a noticeable improvement each year up to 2021, where it peaks at 27.44%. A slight decline is observed in 2022, where the margin decreases to 24.71%, before recovering and reaching the highest point in the period at 30.81% in 2023. These fluctuations may reflect changes in cost management, pricing strategies, or operational dynamics but overall indicate enhanced profitability relative to sales following the initial years.

Summary

Over the six-year span, the segment demonstrates robust growth in both sales and operational income, accompanied by an increasing profit margin. The data suggests effective scaling of operations with improved cost control or pricing power, resulting in heightened profitability. Despite a minor dip in profit margin in 2022, the overall trajectory points to continuous strengthening of the segment's financial performance.

Net Sales

Net sales showed a generally upward trend from 2018 to 2023. Starting at $117.5 million in 2018, sales slightly increased in 2019 and remained relatively stable in 2020. There was a decline in 2021, reaching approximately $105.9 million, but the segment experienced a significant rebound in 2022 and 2023, with net sales peaking at $149.1 million in 2023. This suggests a recovery phase following the 2021 dip, culminating in the highest sales recorded during the period.

Income (Loss) from Operations

Income from operations followed a positive trajectory overall, beginning at $20.4 million in 2018. It increased steadily through 2019 and 2020, peaking at roughly $30.7 million in 2020. A decrease occurred in 2021 to about $27.1 million, followed by a recovery in 2022 to approximately $33.3 million. The year 2023 saw a slight decline to $32.6 million, which remained close to the prior year's level. This pattern aligns with the fluctuations observed in net sales, indicating operational performance was closely tied to sales trends.

Segment Profit Margin

The segment profit margin exhibited an improving trend from 2018 through 2022, rising from 17.36% to a peak of around 25.8% in 2020 and maintaining levels near this peak in the following two years. However, a decline occurred in 2023, with the margin falling to 21.86%. This suggests that while the segment demonstrated improved profitability efficiency for several years, some pressure on margins emerged in the most recent year, possibly reflecting cost increases or changes in pricing dynamics despite increased sales.

Overall Insights

The segment displayed robust growth in net sales and income from operations over the analyzed period, recovering notably after the slight setbacks in 2021. Profitability margins improved significantly through 2020 and stayed elevated until a downturn in 2023. The simultaneous increase in sales and operating income indicates solid market demand and cost control for most of the period, while the recent margin decline points to potential challenges that may warrant further review.

Net Sales

Net sales exhibited a general declining trend over the observed period. Starting at 78,283 thousand USD in March 2018, sales decreased consistently each year until reaching 26,566 thousand USD in March 2021. A slight recovery was observed in March 2022 with sales increasing to 30,316 thousand USD, but this was followed by another decline to 27,678 thousand USD in March 2023.

Income (loss) from Operations

The income from operations showed considerable volatility. It initially declined from 14,474 thousand USD in March 2018 to 12,781 thousand USD in March 2019. A sharp drop occurred in March 2020 with operating income falling substantially to 3,212 thousand USD, and further to a loss of 162 thousand USD in March 2021. Recovery was noted in the subsequent years with income rising to 6,463 thousand USD in March 2022, but it then decreased again to 2,891 thousand USD in March 2023.

Segment Profit Margin

The segment profit margin mirrored the income from operations' variability. It declined from 18.49% in March 2018 to 18.31% in March 2019, then decreased sharply to 8.14% in March 2020 and turned negative to -0.61% in March 2021. This negative margin indicates operational challenges during that year. The margin improved significantly to 21.32% in March 2022, the highest in the period, followed by a reduction to 10.45% in March 2023.

Overall Insights

The data reflect considerable fluctuations in both sales and profitability. The period around 2020 and 2021 was particularly challenging, marked by steep declines in sales, an operational loss, and negative segment margin, which could indicate external pressures or internal disruptions. Recovery signs appeared in 2022 with improved sales and profitability; however, the decline in 2023 suggests that the segment faced ongoing instability. The sharp swings in segment profit margin point to variability in cost control or revenue efficiency over the years.

Net Sales

Net sales exhibited a strong upward trend from 2018 through 2021, increasing from $17,273 thousand in 2018 to a peak of $69,375 thousand in 2021. However, in the subsequent two years, net sales declined progressively, falling to $60,573 thousand in 2022 and further to $53,653 thousand in 2023.

Income (Loss) from Operations

Operating income followed a similar trajectory as net sales initially, rising significantly from $1,304 thousand in 2018 to a peak of $21,573 thousand in 2021. Post-2021, there was a marked decline, with operating income dropping to $14,028 thousand in 2022 and turning negative to -$1,678 thousand in 2023, indicating operational challenges or increased costs in the latest year.

Segment Profit Margin

The segment profit margin demonstrated substantial improvement from 7.55% in 2018 to a maximum of 31.1% in 2021. Following this peak, the margin contracted significantly to 23.16% in 2022 and then sharply declined to a negative margin of -3.13% in 2023, reflecting diminished profitability and potential operational inefficiencies or adverse market conditions.

Overall Analysis

The data indicates a period of growth and enhanced profitability from 2018 through 2021, characterized by increasing sales, operating income, and profit margins. However, starting in 2022 and continuing into 2023, there is a clear reversal in these positive trends with decreasing sales, declining operating income, and erosion of profit margins turning into a loss. This suggests emerging challenges affecting the segment's performance during the latter period, warranting further investigation into underlying causes such as market dynamics, cost structure changes, or competitive pressures.

Income (loss) from operations

The income from operations exhibited a consistent upward trend over the analyzed periods. Starting at $156.9 million in 2018, it steadily increased to $185.4 million in 2019 and slightly decreased to $182.5 million in 2020. Following 2020, there was a significant jump to $349.5 million in 2021, continuing to rise to $435.4 million in 2022, and reaching $508.9 million in 2023. This reflects substantial operational growth, particularly notable from 2020 onwards, suggesting improved operational efficiency or expanding business activities in the segment.

Net sales

Net sales figures reveal a largely positive growth trajectory. The segment recorded sales of approximately $715.7 million in 2018, which remained relatively flat in 2019 at $715.0 million. There was a modest increase to $736.9 million in 2020, followed by a marked acceleration from 2021 onwards – with net sales rising to $1.067 billion in 2021, $1.213 billion in 2022, and further growing to $1.467 billion in 2023. This demonstrates a notable expansion in customer demand or market penetration within this segment, particularly post-2020.

Segment profit margin

The segment profit margin displayed a generally positive trend over the period. Starting at 21.92% in 2018, it increased to 25.94% in 2019 before slightly declining to 24.77% in 2020. From 2021, the margin improved markedly, reaching 32.76%, and further rising to 35.88% in 2022. In 2023, there was a slight dip to 34.7%, but profit margins remained significantly higher compared to the initial years. This improvement in profitability suggests better cost management or enhanced pricing strategy contributing to higher efficiency within the direct-to-consumer channel.

Overall analysis

The direct-to-consumer segment demonstrated robust growth in both sales and operational income over the analyzed periods, particularly from 2020 to 2023. An evident inflection point occurred around 2020-2021 when both net sales and operating income showed significant increases, likely reflecting strategic initiatives or market conditions favorable to this distribution channel. Profit margins also improved considerably, indicating enhanced profitability and operational leverage. While the slight dip in margin in 2023 warrants monitoring, the overall trend remains positive, positioning the segment as a strong contributor to the company's financial performance.

Income (loss) from operations

The income from operations for the segment demonstrated a generally positive trend from 2018 to 2022, increasing from $247,826 thousand in 2018 to a peak of $315,240 thousand in 2022. However, in 2023, there was a noticeable decline to $267,013 thousand, indicating a reduction in operational profitability compared to the previous year.

Assets

Assets showed a relatively stable pattern between 2018 and 2020, with modest increases each year. In 2021, assets decreased to $212,277 thousand, followed by a significant increase in 2022 to $382,837 thousand. This spike was not sustained as assets declined again in 2023 to $261,683 thousand, suggesting possible asset revaluation, divestitures, or fluctuations in investment levels within the segment.

Segment ROA (Return on Assets)

The return on assets exhibited strong performance from 2018 through 2021, increasing from 107.8% to a high of 137.89%. This indicates effective utilization of assets to generate operating income during that period. In 2022, ROA decreased sharply to 82.34%, signaling a reduced efficiency or increased asset base that was not fully leveraged. The figure partially recovered in 2023 to 102.04%, reflecting an improvement in asset productivity but not reaching earlier peak levels.

The analysis of the annual data for the HOKA Wholesale segment reveals several important trends in its financial performance and asset base over the six-year period ending March 31, 2023.

Income (loss) from operations

The income from operations has shown a consistent and substantial upward trajectory throughout the period. Starting at $20.954 million in 2018, the figure nearly doubled by 2019, reaching $35.717 million. Growth accelerated over the subsequent years, with income increasing to $61.860 million in 2020 and significantly rising to $111.208 million in 2021. The upward momentum persisted, with the segment recording $155.344 million in 2022 and peaking at $285.257 million in 2023. This robust growth illustrates enhanced operational profitability and strong segment expansion.

Assets

The asset base exhibited a progressive increase across the years under review. Beginning at $65.943 million in 2018, assets expanded to $94.157 million in 2019 and continued to grow steadily each year to reach $124.958 million in 2020 and $168.365 million in 2021. The growth rate intensified in 2022 and 2023, with assets substantially increasing to $293.025 million and $446.450 million, respectively. This upward trend indicates significant investment or asset accumulation supporting the segment’s growth.

Segment ROA (Return on Assets)

The segment ROA demonstrated some volatility but generally high profitability over the period. It started at 31.78% in 2018, increased to 37.93% in 2019, and then rose sharply to 49.5% in 2020. The highest return was recorded in 2021 at 66.05%, indicating exceptional efficiency in utilizing assets to generate operating income. Although ROA decreased to 53.01% in 2022, it rebounded to 63.89% in 2023. These values reflect consistently strong asset utilization and effective management of segment resources.

Overall, the HOKA Wholesale segment exhibits striking growth in operational income and asset base, accompanied by consistently high returns on assets. The data suggests effective scaling of operations and efficient asset deployment, positioning the segment for sustainable profitability improvements.

Income (loss) from operations

Over the six-year period, the operating income of the segment exhibited a generally positive trend with fluctuations. It started at 20,400 thousand US dollars in 2018 and increased steadily, reaching a peak of 30,736 thousand in 2020. After a slight decline to 27,120 thousand in 2021, the income rebounded to 33,294 thousand in 2022 before slightly decreasing to 32,595 thousand in 2023. The data indicates a resilient operational performance with the highest values recorded in the last three years.

Assets

The asset base displayed variability over the observed timeframe. Beginning at 85,980 thousand US dollars in 2018, assets declined to 76,370 thousand in 2019 but then recovered to a peak of 90,305 thousand in 2020. Following a mild decrease in 2021 to 87,284 thousand, assets increased again in the subsequent years, reaching 94,735 thousand by 2023. Overall, the asset level shows a positive upward movement after an initial dip.

Segment Return on Assets (ROA)

The segment’s ROA illustrates efficient utilization of assets to generate income with some variability. Starting at 23.73% in 2018, ROA surged to 36.58% in 2019, then slightly declined over the next two years to 31.07% in 2021. It recovered to 36.53% in 2022 before a moderate drop to 34.41% in 2023. This pattern suggests a consistently strong performance in asset profitability, with ROA mostly remaining above 30% from 2019 onward.

Income (loss) from operations

The income from operations for the segment experienced significant fluctuations over the analyzed periods. Starting from a high of 14,474 thousand USD in 2018, it declined to 12,781 thousand USD in 2019 and sharply dropped to 3,212 thousand USD in 2020. In 2021, the segment recorded a loss of 162 thousand USD, indicating operational challenges. However, a partial recovery occurred in 2022 with income rising to 6,463 thousand USD, followed by a decrease to 2,891 thousand USD in 2023. Overall, the income showed a downward trend with considerable volatility and a temporary loss in 2021.

Assets

Segment assets exhibited a consistent downward trend from 2018 to 2021, starting at 79,322 thousand USD and decreasing steadily to 38,311 thousand USD by 2021. In 2022 and 2023, asset values slightly increased to 40,766 thousand USD and 41,405 thousand USD, respectively. This suggests a notable contraction of asset base over the first four years followed by stabilization and minor growth in the last two years.

Segment ROA (Return on Assets)

Return on assets mirrored the income trends, beginning at a strong 18.25% in 2018 and maintaining a similar level of 17.93% in 2019. It then declined sharply to 6.38% in 2020 and fell into negative territory at -0.42% in 2021, indicating negative returns relative to assets during that period. The ROA improved significantly to 15.85% in 2022 but dropped again to 6.98% in 2023. The data reveals substantial volatility in profitability with a notable recovery after the 2021 downturn, though it did not sustain the previous higher levels.

Overall Analysis

The segment experienced a period of declining profitability and asset contraction from 2018 through 2021, including an operational loss and negative return on assets in 2021. Subsequent years showed some recovery in income and ROA alongside stabilization of assets, yet the metrics remained below the early period highs. The trends suggest challenges in maintaining operational efficiency and asset utilization, with partial rebounds possibly reflecting strategic adjustments or market conditions. Nevertheless, the segment's financial performance remains inconsistent with evident volatility across the examined years.

The analysis of the annual "Other Brands Wholesale" segment reveals notable fluctuations in operational income, assets, and return on assets (ROA) over the six-year period ending March 31, 2023.

Income (loss) from operations

The segment exhibited a generally positive but volatile income trend from 2018 through 2022. Starting at $1.3 million in 2018, income increased substantially to a peak of approximately $21.6 million in 2021. However, this upward momentum did not persist, as income declined significantly to a loss of $1.7 million by 2023, marking a reversal from prior profitability.

Assets

Assets demonstrated an overall growth trajectory until 2022, rising from $8.9 million in 2018 to a peak of $32.4 million in 2022. In 2023, assets decreased notably to $24.4 million, indicating a contraction in resource investment or asset base after a period of expansion.

Segment ROA (Return on Assets)

ROA shows considerable variability, reflecting changes in income relative to asset levels. Initially, ROA improved sharply from 14.71% in 2018 to a high of 115.17% in 2021, highlighting strong asset utilization efficiency and profitability. This was followed by a marked decline to 43.26% in 2022, and further into negative territory at -6.86% in 2023, suggesting that assets generated losses in the most recent year.

In summary, the segment experienced robust growth in both income and asset efficiency from 2018 through 2021. The decline in both operational income and ROA in the latest year, alongside asset base reduction, indicates emerging challenges affecting profitability and asset employment efficiency within the "Other Brands Wholesale" segment.

Income (loss) from operations

The income from operations exhibited a generally upward trend over the analyzed period. Starting at $156.9 million in 2018, the figure increased to $185.4 million in 2019 before experiencing a slight decline to $182.5 million in 2020. Subsequently, there was a considerable rise to $349.5 million in 2021, with further growth to $435.4 million in 2022 and $508.9 million in 2023. This progression reflects significant improvement in operational profitability, particularly notable in the years following 2020.

Assets

Asset levels displayed volatility during the period. Beginning at $112.4 million in 2018, assets decreased to $95.5 million in 2019 before soaring to $243.5 million in 2020. Afterward, assets declined to $196.1 million in 2021 and continued to decrease slightly to $191.2 million in 2022. By 2023, assets rose again to $219.2 million. These fluctuations suggest changes in asset management or investment strategies, impacting the capital base across years.

Segment Return on Assets (ROA)

The segment ROA showed substantial variation yet maintained an overall high level. The return was 139.64% in 2018, increased sharply to 194.19% in 2019, and then dropped to 74.97% in 2020. Following this dip, the ROA rebounded strongly to 178.22% in 2021, reaching 227.74% in 2022 and further increasing to 232.19% in 2023. This pattern indicates efficient utilization of assets to generate operating income, with peak performance occurring in the most recent years.

Net Sales

The net sales demonstrated a generally positive trend from 2018 to 2023, with some fluctuations. Sales increased steadily from approximately 841.9 million USD in 2018 to nearly 893.0 million USD in 2020. There was a slight decline in 2021 to around 871.8 million USD, followed by a significant increase in 2022, peaking at approximately 1.09 billion USD. In 2023, sales decreased somewhat but remained robust at about 1.00 billion USD, indicating sustained demand with some volatility.

Assets

Assets showed moderate growth initially, rising from about 229.9 million USD in 2018 to approximately 245.2 million USD in 2020. In 2021, assets decreased to roughly 212.3 million USD before experiencing a sharp increase in 2022 to nearly 382.8 million USD. This was followed by a decline in 2023 to about 261.7 million USD. The fluctuations suggest changes in resource allocation and investment strategies within the segment.

Segment Asset Turnover

The segment asset turnover ratio, reflecting the efficiency of asset use to generate sales, fluctuated over the period. It remained relatively stable around 3.6 to 3.7 from 2018 through 2020, then increased noticeably to 4.11 in 2021, indicating improved asset utilization. However, the ratio dropped significantly in 2022 to 2.84, aligning with the sharp increase in assets that year. In 2023, the ratio rebounded to 3.84, suggesting a recovery in efficiency though still below the peak in 2021.

The net sales of the segment exhibited a consistent and substantial upward trajectory over the analyzed period. Starting from US$132,688 thousand in March 2018, net sales increased steadily each year, reaching US$925,877 thousand by March 2023. This represents a strong growth trend, with the most significant absolute increases observed in later years, particularly between 2021 and 2023.

Assets associated with the segment also grew significantly during this period. From US$65,943 thousand in March 2018, assets more than doubled by March 2021, reaching US$168,365 thousand, and continued to increase sharply thereafter to US$446,450 thousand by March 2023. This notable increase in assets aligns with the expansion in net sales, suggesting substantial investment and growth in segment capacity or resources.

Regarding segment asset turnover, the ratio fluctuated over the years but remained within a relatively narrow range. It began at 2.01 in March 2018, declined slightly to 1.97 in March 2019, then increased again to peak at 2.41 in March 2021. After this peak, the ratio decreased to 2.15 in March 2022 and further to 2.07 by March 2023. These fluctuations indicate variations in how efficiently the segment utilized its assets to generate sales. Although asset turnover experienced a peak in 2021, the subsequent decline may reflect the rapid asset base growth outpacing sales increases in the most recent years.

Overall, the data reveals strong growth in both sales and asset base, with asset turnover demonstrating moderate variability but generally maintaining the ability to generate two dollars of sales for each dollar of assets. The trends suggest aggressive expansion, with scaling of resources supporting growing sales volumes, albeit with some decrease in asset efficiency in the latest periods analyzed.

The analyzed data shows the performance of the "Teva Wholesale" segment over six fiscal years from March 31, 2018, to March 31, 2023. Several key financial indicators present distinct trends over this period.

Net Sales

Net sales remained relatively stable between 2018 and 2020, fluctuating marginally around the 117 million to 119 million US$ range. In 2021, there was a noticeable decline to approximately 105.9 million US$, representing a decrease in revenue. However, from 2021 onwards, net sales experienced a significant rebound, increasing sharply to about 129.1 million US$ in 2022 and further to 149.1 million US$ in 2023, which is the highest recorded value in the analyzed period.

Assets

The asset base showed variability, starting at around 85.9 million US$ in 2018 and declining to about 76.4 million US$ in 2019. From 2019 to 2020, assets increased to approximately 90.3 million US$, followed by a slight decrease and stabilization around the 87.3 million to 91.1 million US$ range throughout 2021 and 2022. By 2023, assets reached roughly 94.7 million US$, marking the highest level in the period.

Segment Asset Turnover

Segment asset turnover, which measures the efficiency of asset usage in generating sales, showed a fluctuating pattern. Starting at 1.37 in 2018, it rose to a peak of 1.56 in 2019, indicating enhanced asset utilization. This was followed by a decline to 1.32 in 2020, and further down to 1.21 in 2021, reflecting reduced efficiency. Subsequently, the ratio recovered strongly to 1.42 in 2022, and then to 1.57 in 2023, surpassing previous highs and suggesting significantly improved asset productivity.

Overall, the segment experienced a period of relative stability in sales and asset values early in the timeframe, followed by a notable dip in both revenue and asset turnover in 2021. The subsequent period demonstrated robust recovery and growth, with net sales and asset turnover reaching record levels by 2023. Assets also trended upward towards the end of the period, supporting the segment’s expanding operations. This pattern indicates effective strategic adjustments leading to enhanced market performance and asset efficiency in the latest years analyzed.

The financial data over the six-year period reveals a consistent decline in net sales for the segment. Starting from US$78,283 thousand in 2018, net sales decreased sharply by 11% in 2019, followed by a substantial drop of approximately 43.5% in 2020. This downward trend continued through 2021 and 2022, with lower values recorded each year, reaching US$27,678 thousand by 2023.

Assets for the segment exhibit a similar downward trajectory, falling from US$79,322 thousand in 2018 to US$41,405 thousand in 2023. The asset base diminished steadily each year, with the most pronounced reductions occurring between 2018 and 2021, and a slight stabilization observed from 2021 onwards.

The segment asset turnover ratio, which measures the efficiency in using assets to generate sales, declined from 0.99 in 2018 to 0.67 in 2023. This declining ratio over time indicates a reduced ability to generate sales from the segment’s asset base. The ratio experienced a relatively stable period between 2018 and 2019, after which it continuously decreased, reflecting diminishing operational efficiency or market challenges impacting the segment.

Overall, the data portrays a segment facing significant contraction in sales and asset utilization effectiveness, with a steady decline in asset value and net sales. The deterioration in asset turnover further suggests challenges in maintaining productivity relative to the assets employed.

The analysis of the segment's annual data reveals several key trends across the financial items.

Net Sales

Net sales exhibited a significant upward trajectory from US$17,273 thousand in 2018 to a peak of US$69,375 thousand in 2021. Following this peak, net sales declined over the next two years, falling to US$53,653 thousand by 2023. This pattern indicates strong growth initially, possibly due to increased market penetration or product demand, followed by a contraction likely influenced by market saturation, competition, or external economic factors.

Assets

Segment assets increased steadily from US$8,866 thousand in 2018 to US$21,535 thousand in 2020. There was a slight decline to US$18,732 thousand in 2021, after which assets rose sharply to a maximum of US$32,429 thousand in 2022, before decreasing to US$24,448 thousand in 2023. This fluctuation suggests active asset investments or disposals, reflecting strategic adjustments responsive to business conditions or operational needs.

Segment Asset Turnover

The segment asset turnover ratio, which measures the efficiency of asset use to generate sales, showed an upward trend from 1.95 in 2018 to a peak of 3.7 in 2021, indicating improved efficiency. However, it then dropped significantly to 1.87 in 2022 before partially recovering to 2.19 in 2023. The drop aligns with the reduced net sales and increased asset base during 2022, signifying a temporary decline in asset utilization efficiency.

Overall, the data indicates a phase of rapid growth in sales and asset efficiency until 2021, followed by a period marked by declining sales and reduced efficiency. The increasing asset base in 2022 contrasted with lower sales points to possible overinvestment or delayed returns on capital deployed during this period. The partial recovery of asset turnover in 2023 suggests efforts to optimize asset use amid a more challenging sales environment.

Net Sales

Net sales showed a relatively stable trend between 2018 and 2019, with values close to 715 million USD. A slight increase occurred in 2020, followed by a significant growth trajectory starting in 2021. From 2021 to 2023, net sales increased markedly from approximately 1.07 billion USD to nearly 1.47 billion USD, indicating a strong upward trend in revenue generation within the segment.

Assets

Assets exhibited considerable fluctuation over the analyzed period. Initially, there was a decline from 112 million USD in 2018 to 95.5 million USD in 2019. In 2020, assets more than doubled to 243 million USD, representing a substantial increase. Subsequently, assets decreased to 196 million USD in 2021 and further declined slightly in 2022 before rising again to 219 million USD in 2023. The pattern suggests significant changes in asset deployment or composition during these years.

Segment Asset Turnover

The segment asset turnover ratio, which measures the efficiency of asset use in generating sales, started at 6.37 in 2018 and increased to 7.49 in 2019, reflecting improved efficiency. However, in 2020, the ratio dropped sharply to 3.03, coinciding with the asset increase observed that year. This decline indicates reduced efficiency in utilizing assets to generate sales during this period. From 2021 onward, the ratio improved steadily, reaching 6.69 by 2023, signaling a restoration and enhancement of asset efficiency within the segment.

Overall Insights

The data reveals a generally positive sales growth trend post-2020, paired with volatile asset figures that may indicate strategic investments or asset restructuring. The sharp dip and subsequent recovery in asset turnover ratio highlight a temporary reduction in asset use efficiency, followed by operational improvements. This progression suggests adaptive management responsiveness to changing conditions, ultimately resulting in stronger sales growth and improved asset utilization.

Capital expenditures

Capital expenditures exhibit considerable volatility over the analyzed periods. A significant increase is observed from 58 thousand in 2018 to 205 thousand in 2019, followed by a steep rise to 404 thousand in 2020. However, 2021 presents a noteworthy reversal with negative capital expenditures of -31 thousand, indicating possible asset disposals or other adjustments. The value rebounds sharply in 2022 to 109 thousand and continues to increase to 826 thousand in 2023, marking the highest level in the series.

Depreciation, amortization, and accretion

Depreciation and related charges show a pronounced declining trend from 3,193 thousand in 2018 down to 416 thousand in 2022, suggesting reducing asset base or changes in amortization schedules. An exception occurs in 2023, where the value rises slightly to 611 thousand. The overall pattern indicates a decrease in the rate or level of charge over time, except for a notable uptick in the final year.

Segment capital expenditures to depreciation ratio

The ratio of capital expenditures to depreciation demonstrates substantial fluctuations across the periods. Starting at a low 0.02 in 2018, it increases steadily to 0.16 in 2019 and 0.66 in 2020, reflecting growing investment relative to asset consumption. In 2021, the ratio turns negative (-0.06), aligning with the negative capital expenditures, which is an unusual event. The ratio recovers to 0.26 in 2022 and rises markedly to 1.35 in 2023, suggesting capital expenditures have significantly outpaced depreciation in the most recent period, indicating possible asset expansion or reinvestment initiatives.

Capital Expenditures

Capital expenditures showed notable fluctuations over the observed periods. Starting from a value of 285 thousand US dollars in 2019, there was an increase to 434 thousand in 2020, followed by a significant decline to 56 thousand in 2021. The trend reversed sharply thereafter, with capital expenditures rising markedly to 1,191 thousand in 2022 and further increasing to 1,229 thousand in 2023. Overall, the latter two years indicate a substantial investment phase compared to earlier periods.

Depreciation, Amortization, and Accretion

This expense category exhibited a relatively steady upward trend during the timeframe. Starting at 485 thousand US dollars in 2018, it slightly decreased to 456 thousand in 2019 but then consistently rose each subsequent year. By 2023, the figure reached 945 thousand, representing nearly a doubling from the starting point five years prior. This increase may reflect the growing asset base and associated amortization related to capital investments.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation oscillated significantly across the years. It started at 0.63 in 2019, rising moderately to 0.71 in 2020 before dropping sharply to 0.09 in 2021. The subsequent years saw a pronounced increase, with the ratio climbing to 1.7 in 2022 and slightly decreasing to 1.3 in 2023. This pattern indicates periods of reduced asset investment followed by intensive capital spending relative to depreciation costs, aligning with the noted trends in capital expenditures and amortization.

The data for the "Teva Wholesale" segment reveals significant limitations due to missing values, particularly for capital expenditures and segment capital expenditures to depreciation ratio, which are entirely absent. The available data pertains solely to depreciation, amortization, and accretion expenses.

Depreciation, amortization, and accretion expenses show a declining trend from 12 thousand US dollars in the fiscal year ending March 31, 2018, to 10 thousand in 2019, and then a sharp drop to 1 thousand in 2020. For the subsequent years 2021, 2022, and 2023, no data is provided.

The observed decreasing pattern in depreciation, amortization, and accretion from 2018 to 2020 could indicate a reduction in the segment's capital asset base or changes in the asset depreciation schedules. However, the lack of data for capital expenditures and later years limits the ability to draw definitive conclusions regarding investment trends or the ongoing utilization and accounting of the segment's fixed assets.

Overall, the segment's financial data is sparsely populated, restricting detailed analysis. The downward shift in amortization-related charges merits further investigation, ideally supported by more complete data on capital expenditures and subsequent depreciation figures to understand the asset lifecycle and investment strategy fully.

Capital Expenditures

The capital expenditures display a sporadic pattern with recorded values only in 2018 and 2021 at US$20,000 and US$8,000 respectively, while data for other years are missing. This indicates limited or inconsistent investment in long-term assets within the segment during the observed period.

Depreciation, Amortization, and Accretion

There is a clear declining trend in depreciation, amortization, and accretion expenses over the six-year period. The amount decreased significantly from US$4.174 million in 2018 to US$1.490 million in 2023. The most notable drop occurred between 2019 and 2020, suggesting a reduction in capital assets or a change in asset valuation or lifespan assumptions.

Segment Capital Expenditures to Depreciation Ratio

This ratio could only be calculated for 2018 and 2021 where corresponding data are available. The values recorded are zero, indicating that capital expenditures were minimal compared to depreciation expenses during those years. The absence of data for other years prevents further trend analysis in this ratio.

The "Other Brands Wholesale" reportable segment exhibits a relatively stable pattern in several key financial metrics over the period analyzed.

Capital Expenditures

Capital expenditures were absent or unreported in the earliest period but started at a modest level of 11 thousand US dollars as of March 31, 2019. This figure increased significantly to 64 thousand US dollars in the following year, March 31, 2020, before declining to 40 thousand US dollars by March 31, 2021. No data were reported for the years ending March 31, 2018, 2022, and 2023.

Depreciation, Amortization, and Accretion

Depreciation, amortization, and accretion expenses remained constant at 380 to 382 thousand US dollars for each year from March 31, 2018, through March 31, 2023. This indicates a stable non-cash expense allocation with no significant changes recorded during the periods under consideration.

Segment Capital Expenditures to Depreciation Ratio

This ratio, representing the level of capital reinvestment relative to depreciation expenses, showed some variability. It was unreported initially but presented as 0.03 in the year ending March 31, 2019, increased markedly to 0.17 in March 31, 2020, then decreased to 0.1 by March 31, 2021. The ratio was not available for other periods, indicating either missing data or no capital expenditures relative to depreciation during those years.

Overall, the segment’s operational asset base appears to be maintained with consistent depreciation charges, accompanied by fluctuating but generally low levels of capital investment. These trends suggest a cautious approach to reinvestment in capital assets, with capital expenditures not consistently exceeding depreciation, thereby potentially indicating limited growth or maintenance-driven asset management strategies within the segment.

The analysis of the annual data for the Direct-to-Consumer segment reveals notable trends in capital expenditures, depreciation, and their relative ratio over the six-year period ending in March 2023.

Capital Expenditures

Capital expenditures demonstrate a mixed trend initially, with a decrease from 8,641 thousand US dollars in 2018 to 5,739 thousand in 2019, followed by a recovery to 7,753 thousand in 2020. Subsequently, a consistent upward trajectory is evident from 2020 onwards, reaching 19,789 thousand US dollars by 2023. This significant increase, especially between 2022 and 2023, indicates escalating investments in the segment.

Depreciation, Amortization, and Accretion

This expense generally exhibits a declining trend over the period. It decreases from 13,396 thousand US dollars in 2018 to 9,771 thousand in 2022, with a slight uptick to 10,276 thousand in 2023. The overall decrease suggests either a reduction in the depreciable asset base or the impact of fully depreciated assets, counterbalanced modestly in the last year.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation starts at 0.65 in 2018, diminishing to 0.47 in 2019, reflecting lower capital spending relative to depreciation. Thereafter, a steady increase is noted, with the ratio nearly doubling from 0.94 in 2021 to 1.93 in 2023. This rise suggests that capital investments are increasingly outpacing the depreciation charge, potentially signaling a growth phase or expansion of asset base within the segment.

Overall, the data indicate a strategic shift towards increased capital investment in the Direct-to-Consumer segment, while depreciation expense decreases slightly. The rising capital expenditures relative to depreciation imply intentional asset growth, which may support future operational capacity or sales growth in this segment.