Steven Madden Ltd (SHOO)
Payables 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 |
| Payables | US$ in thousands | 206,889 | 225,586 | 189,772 | 170,154 | 161,140 | 140,623 | 130,417 | 101,678 | 130,542 | 99,173 | 105,130 | 121,428 | 136,766 | 121,838 | 91,822 | 99,007 | 73,904 | 65,666 | 42,474 | 76,284 |
| Payables turnover | 6.51 | 5.78 | 6.63 | 7.10 | 7.13 | 7.94 | 8.61 | 11.66 | 9.56 | 13.27 | 12.35 | 9.95 | 8.03 | 8.01 | 9.52 | 7.41 | 9.98 | 11.89 | 20.72 | 14.06 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,345,995K ÷ $206,889K
= 6.51
The payables turnover ratio of Steven Madden Ltd has fluctuated over the periods analyzed. The ratio measures how efficiently the company is managing its accounts payable by evaluating how many times a company pays off its average accounts payable balance during a certain period.
From March 31, 2020, to December 31, 2024, the payables turnover ratio ranged from a high of 20.72 in June 30, 2020, to a low of 5.78 in September 30, 2024. A higher payables turnover ratio indicates that Steven Madden Ltd is paying off its suppliers more frequently, which could be beneficial in terms of maintaining good supplier relationships and potentially taking advantage of early payment discounts.
However, the downward trend in the payables turnover ratio from 2020 to 2024 suggests that the company started taking longer to pay its suppliers, which could signal potential liquidity issues or changes in payment terms negotiated with suppliers. It is important for the company to monitor this ratio to ensure effective management of its accounts payable and maintain good relationships with its suppliers.
Peer comparison
Dec 31, 2024