Steven Madden Ltd (SHOO)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,345,995 | 1,304,008 | 1,258,984 | 1,207,992 | 1,149,168 | 1,116,227 | 1,123,287 | 1,185,079 | 1,248,173 | 1,316,368 | 1,297,945 | 1,208,560 | 1,098,645 | 976,159 | 874,405 | 733,490 | 737,273 | 780,909 | 880,196 | 1,072,901 |
| Inventory | US$ in thousands | 257,625 | 268,669 | 241,643 | 201,960 | 228,990 | 205,693 | 207,839 | 179,937 | 228,752 | 244,315 | 306,547 | 233,380 | 255,213 | 201,198 | 125,525 | 106,561 | 101,420 | 109,683 | 103,282 | 102,265 |
| Inventory turnover | 5.22 | 4.85 | 5.21 | 5.98 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,345,995K ÷ $257,625K
= 5.22
Inventory turnover measures how efficiently a company manages its inventory by indicating how many times in a year the inventory is sold and replaced. A higher inventory turnover ratio indicates that a company is selling goods quickly and efficiently.
Analyzing the inventory turnover of Steven Madden Ltd over the provided time periods shows fluctuations in the ratio. The trend indicates a decreasing pattern, starting at 10.49 on March 31, 2020, and gradually declining to 5.22 on December 31, 2024. This trend suggests that the company's inventory turnover has been slowing down over time.
The decrease in inventory turnover could be due to various reasons, such as slower sales, overstocked inventory, changing consumer preferences, or inadequate inventory management practices. It is essential for the company to address these issues to improve its inventory turnover ratio and enhance operational efficiency.
Overall, the decreasing trend in Steven Madden Ltd's inventory turnover ratio indicates a potential inefficiency in managing its inventory, which may require further analysis and strategic interventions to optimize inventory levels and improve overall performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024