Steven Madden Ltd (SHOO)
Payables 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 |
| Payables | US$ in thousands | 161,140 | 130,542 | 136,766 | 73,904 | 61,706 |
| Payables turnover | 7.13 | 9.56 | 8.03 | 9.98 | 17.84 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,149,170K ÷ $161,140K
= 7.13
The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to its average accounts payable balance. A higher payables turnover ratio typically indicates that the company is paying its suppliers more quickly.
Analyzing Steven Madden Ltd.'s payables turnover over the past five years shows a fluctuating trend. The payables turnover ratio decreased from 17.84 in 2019 to 7.13 in 2023. This sharp decline may suggest that the company is taking longer to pay its suppliers compared to previous years.
A low payables turnover ratio could potentially indicate liquidity issues or strained relationships with suppliers. It may also signal that the company is using its suppliers as a source of short-term financing. Further investigation into the reasons behind the decline in the payables turnover ratio is necessary to assess the impact on Steven Madden Ltd.'s overall financial health and operational efficiency.
Peer comparison
Dec 31, 2023