Steven Madden Ltd (SHOO)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,149,170 | 1,248,170 | 1,098,640 | 737,273 | 1,101,140 |
| Inventory | US$ in thousands | 228,990 | 228,752 | 255,213 | 101,420 | 136,896 |
| Inventory turnover | 5.02 | 5.46 | 4.30 | 7.27 | 8.04 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,149,170K ÷ $228,990K
= 5.02
Steven Madden Ltd.'s inventory turnover has exhibited fluctuations over the past five years. The inventory turnover ratio indicates how many times the company's inventory is sold and replaced within a given period. A higher turnover ratio is generally considered more favorable as it signifies efficient inventory management.
In 2023, the inventory turnover ratio decreased to 5.02 from 5.46 in 2022, indicating a slight decline in the efficiency of inventory management. Despite this decrease, the company's inventory turnover remains relatively healthy.
Comparing to previous years, the inventory turnover ratio was at its lowest in 2021 at 4.30, which may indicate possible inefficiencies in inventory management during that period. However, there was a significant improvement in 2020 with a ratio of 7.27, followed by a further increase in 2019 to 8.04, suggesting better inventory management practices in those years.
Overall, Steven Madden Ltd. has generally maintained a moderate to high level of inventory turnover, which is indicative of effective management of its inventory levels. It is essential for the company to monitor and analyze this metric continuously to ensure optimal utilization of its inventory resources and efficient operations.
Peer comparison
Dec 31, 2023