Steven Madden Ltd (SHOO)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.02 | 5.43 | 5.40 | 6.59 | 5.46 | 5.39 | 4.23 | 5.18 | 4.30 | 4.85 | 6.97 | 6.88 | 7.27 | 7.12 | 8.52 | 10.49 | 8.04 | 7.42 | 7.36 | 9.05 | |
| DOH | days | 72.73 | 67.26 | 67.54 | 55.42 | 66.89 | 67.74 | 86.21 | 70.48 | 84.79 | 75.23 | 52.40 | 53.03 | 50.21 | 51.27 | 42.83 | 34.79 | 45.38 | 49.22 | 49.62 | 40.33 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.02
= 72.73
The days of inventory on hand (DOH) ratio measures the average number of days it takes for a company to sell its inventory. A lower DOH indicates a faster turnover of inventory and potentially more efficient inventory management.
Analyzing Steven Madden Ltd.'s DOH over the past eight quarters, we observe some fluctuations in the ratio. In Q4 2023, the DOH was 72.73 days, which was higher compared to the previous quarter but remained elevated. This suggests that the company may be holding onto inventory for a longer period, which could tie up working capital and increase holding costs.
In comparison to Q1 2023, where the DOH was 55.42 days, there has been an increase in the number of days it takes to sell inventory. However, Q1 2023 appears to be an outlier as the DOH was significantly lower than other quarters.
Looking back further, in Q2 2022, the DOH spiked to 86.21 days, indicating that the company was struggling with inventory management during that period. Subsequently, there was a marked improvement in Q4 2022, with the DOH dropping to 66.89 days.
Overall, Steven Madden Ltd.'s DOH has shown variability over the quarters, suggesting potential fluctuations in inventory management practices. Investors and analysts may want to closely monitor this ratio to assess the company's efficiency in managing its inventory levels.
Peer comparison
Dec 31, 2023