Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Deckers Outdoor Corp., FCFF calculation
US$ in thousands
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).
Analysis of the cash flow profile reveals significant volatility over the six-year period ending March 31, 2023. The relationship between net cash provided by operating activities and free cash flow to the firm (FCFF) demonstrates a high degree of correlation, with FCFF movements closely mirroring operational cash generation.
- Operational Cash Flow Trends
- Net cash provided by operating activities exhibited a period of moderate growth between 2018 and 2019, followed by a contraction in 2020. A substantial peak occurred in 2021, reaching 596,217 thousand US$, before experiencing a sharp decline to 172,353 thousand US$ in 2022. A strong recovery followed in 2023, with figures rising to 537,422 thousand US$.
- Free Cash Flow to the Firm (FCFF) Performance
- FCFF followed a nearly identical trajectory to operating cash flow. The metric peaked in 2021 at 566,284 thousand US$ and reached its lowest point in 2022 at 122,818 thousand US$. By March 31, 2023, FCFF recovered significantly to 457,868 thousand US$, although it remained below the 2021 peak.
- Investment and Capital Allocation Patterns
- The variance between net operating cash and FCFF remained relatively consistent between 2018 and 2021. However, a notable expansion of this gap is observed in 2023, where the difference increased to 79,554 thousand US$. This suggests a heightened level of capital expenditure or investment in firm assets during the most recent fiscal year compared to the historical average of the preceding five years.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Interest Paid, Net of Tax
Deckers Outdoor Corp., interest paid, net of tax calculation
US$ in thousands
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).
2 2023 Calculation
Cash paid during the period, interest, tax = Cash paid during the period, interest × EITR
= 1,880 × 22.41% = 421
The analysis of net interest payments and the corresponding effective income tax rates reveals a period of initial volatility followed by a sustained reduction in interest expenditures.
- Effective Income Tax Rate (EITR) Trends
- A significant reduction in the effective income tax rate occurred between March 31, 2018, and March 31, 2019, decreasing from 48.17% to 19.65%. Following this sharp contraction, the rate stabilized, fluctuating within a narrow range between 18.99% and 23.72% over the remaining five years, ending the period at 22.41% in March 2023.
- Cash Interest Payment Patterns
- Cash paid for interest, net of tax, experienced a peak of 3,062 thousand US dollars in March 2019. After this peak, a general downward trend emerged, despite a temporary increase to 2,236 thousand US dollars in March 2021. The period concluded with the lowest recorded payments in March 2022 and March 2023, with the latter reaching 1,459 thousand US dollars, representing a decrease of approximately 52.3% from the 2019 high.
- Correlation and Fiscal Insight
- The stabilization of the effective income tax rate after 2019 suggests that the subsequent decline in net interest payments was driven primarily by a reduction in gross interest obligations rather than tax-shield fluctuations. The consistent decrease in cash outflows for interest between 2021 and 2023, occurring while tax rates remained relatively flat, indicates an improvement in the company's interest expense profile.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Enterprise Value to FCFF Ratio, Current
Deckers Outdoor Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 20,872,384) |
| Free cash flow to the firm (FCFF) | 457,868) |
| Valuation Ratio | |
| EV/FCFF | 45.59 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| lululemon athletica inc. | 11.46 |
| Nike Inc. | 23.62 |
| EV/FCFF, Sector | |
| Consumer Durables & Apparel | 12.47 |
| EV/FCFF, Industry | |
| Consumer Discretionary | 47.37 |
Based on: 10-K (reporting date: 2023-03-31).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
Deckers Outdoor Corp., historical EV/FCFF 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) | |||||||
| Enterprise value (EV)1 | 11,187,242) | 6,439,297) | 8,240,239) | 4,864,321) | 3,863,528) | 2,951,371) | |
| Free cash flow to the firm (FCFF)2 | 457,868) | 122,818) | 566,284) | 256,368) | 333,549) | 294,610) | |
| Valuation Ratio | |||||||
| EV/FCFF3 | 24.43 | 52.43 | 14.55 | 18.97 | 11.58 | 10.02 | |
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| lululemon athletica inc. | 120.71 | 42.97 | 69.99 | — | — | — | |
| Nike Inc. | 31.57 | 36.54 | 40.08 | — | — | — | |
| EV/FCFF, Sector | |||||||
| Consumer Durables & Apparel | 36.97 | 37.72 | 42.57 | — | — | — | |
| EV/FCFF, Industry | |||||||
| Consumer Discretionary | 33.07 | 51.09 | 60.31 | — | — | — | |
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).
3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 11,187,242 ÷ 457,868 = 24.43
4 Click competitor name to see calculations.
The analysis of the Enterprise Value to Free Cash Flow to the Firm (EV/FCFF) ratio reveals a period of significant expansion in valuation coupled with substantial volatility in cash flow generation from March 2018 through March 2023.
- Enterprise Value Trajectory
- Enterprise value demonstrated a strong upward trend, growing from 2,951,371 thousand US dollars in 2018 to 11,187,242 thousand US dollars in 2023. This growth was not linear, with a notable acceleration between 2020 and 2021, followed by a temporary contraction in 2022, and a sharp increase in the final period.
- Free Cash Flow to the Firm (FCFF) Performance
- FCFF exhibited significant instability over the period. After a period of relative stability between 2018 and 2020, cash flow peaked at 566,284 thousand US dollars in 2021. This was followed by a sharp decline to 122,818 thousand US dollars in 2022, representing the lowest cash flow level in the analyzed timeframe, before recovering to 457,868 thousand US dollars in 2023.
- EV/FCFF Ratio Analysis
- The EV/FCFF ratio reflects the divergence between market valuation and cash flow generation. The ratio remained low and stable between 10.02 and 11.58 from 2018 to 2019, but trended upward thereafter. A critical anomaly occurred in 2022, where the ratio spiked to 52.43, a direct result of the collapse in FCFF during that fiscal year. While the ratio moderated to 24.43 by March 2023, it remains more than double the levels observed at the start of the period, indicating a significantly higher valuation multiple relative to the firm's cash flow capacity.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?