Steven Madden Ltd (SHOO)
Payables 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 |
| Payables | US$ in thousands | 206,889 | 161,140 | 130,542 | 136,766 | 73,904 |
| Payables turnover | 6.51 | 7.13 | 9.56 | 8.03 | 9.98 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,346,000K ÷ $206,889K
= 6.51
Based on the provided data, Steven Madden Ltd's payables turnover ratio has shown some fluctuations over the years. In 2020, the payables turnover was calculated at 9.98 times, indicating that the company paid off its suppliers almost 10 times during that period.
However, there was a decline in this ratio in 2021 to 8.03 times, suggesting that the company took slightly longer to pay off its suppliers compared to the previous year. The payables turnover improved in 2022 to 9.56 times, highlighting a more efficient utilization of trade payables.
In the subsequent years, the payables turnover ratio decreased further to 7.13 times in 2023 and 6.51 times in 2024. These decreases may indicate that Steven Madden Ltd is taking longer to pay its suppliers, which could be a concern if it signals potential cash flow issues or strained vendor relationships.
Overall, a declining trend in payables turnover may warrant further investigation into the company's payment practices and relationships with suppliers to ensure sustainable liquidity and operational efficiency in the long run.
Peer comparison
Dec 31, 2024