Steven Madden Ltd (SHOO)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,346,000 | 1,149,170 | 1,248,170 | 1,098,640 | 737,273 |
| Inventory | US$ in thousands | 257,625 | 228,990 | 228,752 | 255,213 | 101,420 |
| Inventory turnover | 5.22 | 5.02 | 5.46 | 4.30 | 7.27 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,346,000K ÷ $257,625K
= 5.22
Steven Madden Ltd's inventory turnover has been fluctuating over the past five years. In 2020, the inventory turnover was 7.27, indicating that the company sold and replaced its inventory approximately 7.27 times during the year. However, there was a significant decrease in inventory turnover to 4.30 in 2021, suggesting that the company took longer to sell and replace its inventory.
In the following years, there was some improvement in inventory turnover, with ratios of 5.46 in 2022, 5.02 in 2023, and 5.22 in 2024. These figures indicate that the company was able to manage its inventory more efficiently compared to 2021, but the turnover rate still remains below the 2020 level.
A lower inventory turnover ratio may indicate potential issues such as overstocking, slow-moving inventory, or challenges in forecasting demand accurately. It is essential for the company to strike a balance in managing its inventory levels to avoid tying up excess capital in unsold goods while ensuring that popular items are readily available to meet customer demand. Continued monitoring and adjustment of inventory management practices may help Steven Madden Ltd optimize its inventory turnover and overall operational efficiency.
Peer comparison
Dec 31, 2024