Deckers Outdoor Corp. (NYSE:DECK)

Net Operating Profit After Taxes (NOPAT)

The NOPAT demonstrates a consistent upward trend over the six-year period. Starting from approximately $130.4 million in 2018, it more than tripled by 2023, reaching nearly $503 million. This growth indicates significant improvement in operational efficiency and profitability after tax expenses.

Invested Capital

The invested capital also increased steadily throughout the period. Beginning at about $1.23 billion in 2018, it grew to nearly $1.95 billion in 2023. This gradual increase reflects ongoing investments in assets and operational capacity, supporting the company's growth and expansion.

Return on Invested Capital (ROIC)

ROIC showed considerable improvement from 2018 to 2019, jumping from 10.63% to 21.51%. Although there was a slight decline in 2020 to 20.11%, the ratio resumed an upward trajectory in the following years, reaching 25.81% in 2023. This consistent increase over time indicates enhanced capital efficiency and an effective utilization of invested funds to generate profits.

Overall Analysis

The company demonstrates strong financial performance characterized by substantial growth in NOPAT and invested capital. The improvement in ROIC suggests that the company has become increasingly proficient in generating returns from its investments. The combination of rising profitability and improved capital efficiency underlines a positive trend in both operational execution and strategic asset management.

The financial data reveals several noteworthy trends over the analyzed periods, indicating changes in operational efficiency, asset utilization, taxation impact, and overall profitability.

Operating Profit Margin (OPM)

The operating profit margin exhibited a general upward trajectory from 12.26% in 2018 to a peak of 20.21% in 2021. After this peak, a slight decline occurred in 2022 and 2023, settling near 18.3%. This pattern suggests an improvement in operational efficiency through 2021, followed by a modest reduction, albeit maintaining a relatively high margin compared to the initial year.

Turnover of Capital (TO)

The turnover ratio remained relatively stable at approximately 1.55 between 2018 and 2021, before incrementally increasing to 1.82 in 2022 and 1.86 in 2023. This indicates a gradual enhancement in capital utilization efficiency, signifying that the company is generating more revenue per unit of invested capital in recent years.

1 – Effective Cash Tax Rate (CTR)

This metric saw a notable increase from 55.89% in 2018 to levels above 74% starting in 2021, reaching approximately 76% by 2023. The rise indicates a higher proportion of pre-tax earnings is effectively paid as cash taxes over the latter years, which could impact net profitability and cash flow.

Return on Invested Capital (ROIC)

The ROIC demonstrated a strong growth pattern, climbing from 10.63% in 2018 to 25.81% in 2023. This significant improvement highlights the company’s enhanced ability to generate returns from its invested capital. The steady increase corroborates the trends observed in operating profit margin and turnover of capital, collectively signaling greater operational success and effective capital management.

Overall, the data reflects a positive trajectory in both profitability and capital efficiency until 2021, with sustained high performance in subsequent years despite slight dips in certain areas. The rising effective tax rate could be a factor to monitor, as it has increased notably and may affect cash flows. Nevertheless, strong returns on invested capital suggest robust financial health and operational strength throughout the reporting periods.

Net Operating Profit Before Taxes (NOPBT)

The NOPBT exhibits a consistent upward trajectory from 2018 to 2023. Starting at $233,363 thousand in 2018, it sharply increased to $341,093 thousand in 2019 and continued to grow steadily each year, reaching $661,025 thousand in 2023. This reflects a nearly threefold increase over the six-year period, demonstrating strong profitability growth before taxes.

Adjusted Net Sales

Adjusted net sales also show a clear growth trend throughout the period. From $1,903,339 thousand in 2018, the sales increased steadily each year, reaching $3,624,930 thousand by 2023. The growth is particularly notable from 2020 onwards, indicating accelerated revenue expansion, especially between 2021 and 2023.

Operating Profit Margin (OPM)

The operating profit margin has fluctuated over the years but generally exhibits an improving trend until 2021, where it peaked at 20.21%. After 2021, the margin slightly declined to 18.36% in 2022 and further to 18.24% in 2023. Despite this mild decrease, the margin remains significantly higher compared to the 12.26% recorded in 2018, indicating improved operational efficiency and profitability.

Overall Trends and Insights

The overall financial performance shows strong growth in both profit and sales over the reviewed period. The significant increases in NOPBT and adjusted net sales indicate expanding business operations and successful revenue generation strategies. Although the operating profit margin peaked in 2021 and slightly declined afterward, it has generally been maintained at a comparatively high level, suggesting good control over operating expenses relative to sales. The slight reduction in margins from 2021 to 2023 might warrant attention to cost management or pricing strategies to sustain profitability at peak levels.

The financial data reveals several key trends over the analyzed periods ending March 31 from 2018 to 2023. Net sales demonstrate a consistent upward trajectory, indicating steady revenue growth. Specifically, adjusted net sales increased from approximately $1.9 billion in 2018 to about $3.6 billion in 2023. This represents nearly a doubling of net sales within five years, suggesting successful market expansion or increased product demand.

Invested capital also shows a growing trend, rising from roughly $1.23 billion in 2018 to nearly $1.95 billion in 2023. Although the invested capital increased year-over-year, the growth rate is less pronounced compared to net sales, indicating improved capital efficiency.

Capital turnover, defined as the ratio of sales to invested capital, remains relatively stable in the range of 1.5 to 1.55 from 2018 to 2021. However, a noticeable increase occurs starting in 2022, with the turnover rising to 1.82 and further to 1.86 in 2023. This upward shift suggests enhanced utilization of invested capital, reflecting the company's improved operational efficiency in generating sales from its capital base.

In summary, the company exhibits strong sales growth accompanied by moderate increases in invested capital. The improving capital turnover ratio in recent periods underscores a positive trend in capital productivity, which may contribute to better profitability and return on investment metrics going forward.

The financial data reveals several notable trends over the six-year period.

Cash Operating Taxes

There is a general upward trend in cash operating taxes, starting at 102,942 thousand US$ in 2018 and reaching 158,090 thousand US$ in 2023. After a significant decline in 2019 to 59,907 thousand US$, cash taxes gradually increased each subsequent year, peaking in 2023.

Net Operating Profit Before Taxes (NOPBT)

NOPBT demonstrates a consistent and robust increase throughout the period. It rose from 233,363 thousand US$ in 2018 to 661,025 thousand US$ in 2023. This upward trajectory indicates strengthening operational profitability within the company across the years.

Effective Cash Tax Rate (CTR)

The effective cash tax rate shows a significant decrease from 44.11% in 2018 to a low of 17.56% in 2019, remaining relatively stable around this level through 2020. From 2021 onwards, the tax rate increased moderately to approximately 24% by 2023. This pattern suggests changes in tax management or tax-related efficiencies that impacted the cash tax paid in proportion to profits.

Overall, the data indicates growing profitability with increasing cash tax payments, although the effective cash tax rate experienced volatility, dropping sharply early in the period before stabilizing at a moderately higher rate in the later years.