Steven Madden Ltd (SHOO)

Activity ratios

Short-term

Turnover ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 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 8.04 7.42 7.36 9.05
Receivables turnover — 428.21 319.70 281.09 8.55 258.20 168.15 173.47 5.11 141.48 5.73 4.22 4.76 5.45 11.53 7.48 8.26 5.99 6.13 6.43
Payables turnover 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 17.84 12.16 10.00 16.67
Working capital turnover 4.15 3.70 3.79 3.97 4.06 4.15 4.18 3.95 3.66 3.33 3.14 2.52 2.60 2.95 3.58 4.24 4.08 3.93 3.82 3.72

The activity ratios of Steven Madden Ltd. provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.

1. Inventory turnover: The company's inventory turnover has shown slight fluctuations over the quarters, ranging from 4.23 to 6.59. A higher inventory turnover indicates that Steven Madden Ltd. is effectively selling its inventory and replenishing it quickly.

2. Receivables turnover: The receivables turnover ratios have also varied, with values ranging from 4.81 to 7.42. A higher receivables turnover suggests that the company is efficiently collecting payments from its customers.

3. Payables turnover: The payables turnover ratios have shown fluctuations, ranging from 7.13 to 13.27. A higher payables turnover indicates that Steven Madden Ltd. is efficiently managing its payments to suppliers.

4. Working capital turnover: The working capital turnover ratios have remained relatively stable around 4.0, indicating that the company is effectively utilizing its working capital to generate sales.

Overall, the activity ratios of Steven Madden Ltd. demonstrate that the company is effectively managing its inventory, receivables, payables, and working capital to drive operational efficiency in its business activities.

Average number of days

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 72.73 67.26 67.54 55.42 66.89 67.74 86.21 70.48 84.79 75.23 52.40 53.03 50.21 51.27 42.83 34.79 45.38 49.22 49.62 40.33
Days of sales outstanding (DSO) days — 0.85 1.14 1.30 42.70 1.41 2.17 2.10 71.39 2.58 63.69 86.47 76.74 67.01 31.66 48.81 44.21 60.90 59.51 56.81
Number of days of payables days 51.18 45.98 42.38 31.32 38.17 27.50 29.56 36.67 45.44 45.56 38.33 49.27 36.59 30.69 17.61 25.95 20.45 30.01 36.48 21.89

The activity ratios of Steven Madden Ltd. provide insights into how efficiently the company manages its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH): This ratio indicates the average number of days it takes for the company to sell its inventory. The trend shows some fluctuations but generally remains around the 60-70 days range, except for Q2 2022. A higher DOH value suggests slower inventory turnover, which may indicate overstocking or difficulties in selling products.

2. Days of Sales Outstanding (DSO): DSO represents the average number of days it takes for the company to collect its accounts receivable. The trend is quite volatile, with values ranging from the mid-40s to mid-70s. Higher DSO values indicate slower collection of receivables, which can affect cash flow and liquidity.

3. Number of Days of Payables: This ratio reflects the average number of days the company takes to pay its suppliers. The trend shows a decrease over the quarters, indicating a more efficient management of payables. A lower number of days of payables can sometimes indicate a more aggressive approach to managing supplier payments or potential liquidity issues.

Overall, the activity ratios suggest that Steven Madden Ltd. may have some challenges in effectively managing its inventory turnover and accounts receivable collection. The decreasing trend in the number of days of payables could indicate an improvement in managing payables efficiently. Management should closely monitor these ratios to ensure optimal working capital management and overall operational efficiency.

Long-term

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 41.98 43.02 45.81 48.80 52.18 60.49 62.91 56.67 52.14 44.53 38.17 29.75 27.78 29.41 28.71 33.15 27.28 29.42 28.38 26.70
Total asset turnover 1.47 1.50 1.52 1.68 1.69 1.82 1.68 1.62 1.38 1.26 1.24 1.03 1.06 1.15 1.26 1.51 1.40 1.39 1.37 1.40

The long-term activity ratios of Steven Madden Ltd., specifically the fixed asset turnover and total asset turnover, provide insights into the company's efficiency in generating sales relative to its investment in fixed assets and total assets.

The fixed asset turnover ratio has shown a declining trend over the quarters, from 52.18 in Q4 2022 to 41.98 in Q4 2023. This indicates that the company is generating fewer sales in relation to its investment in fixed assets over time. A lower fixed asset turnover ratio could suggest underutilization of fixed assets or inefficiencies in asset management.

On the other hand, the total asset turnover ratio has demonstrated fluctuations over the quarters, ranging from 1.47 to 1.69. A total asset turnover ratio below 1 indicates that the company is not generating sufficient sales from its total assets. The gradual increase in total asset turnover from Q1 2023 to Q4 2023 implies an improvement in the company's efficiency in generating sales relative to its total asset base.

Overall, while the total asset turnover has shown some positive trends, the declining fixed asset turnover ratio raises concerns regarding the company's utilization of its fixed assets. Management should focus on improving operational efficiency and optimizing the utilization of fixed assets to enhance overall profitability and performance.