Steven Madden Ltd (SHOO)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | 545.80 | 670.53 | 424.73 | — | 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 |
| 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 |
| Working capital turnover | 4.75 | 4.51 | 4.73 | 4.36 | 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 |
Inventory Turnover Ratio Analysis:
- The inventory turnover ratio has been fluctuating over the years, ranging from a high of 10.49 in March 2020 to a low of 4.23 in June 2022.
- A higher turnover ratio implies that the company is selling products quickly, while a lower ratio may indicate overstocking or slowing sales.
Receivables Turnover Ratio Analysis:
- The receivables turnover ratio shows significant variability, with a sharp increase from 141.48 in September 2021 to over 670.53 in June 2024.
- A high receivables turnover ratio suggests efficient collection of receivables, while a sudden spike may signify changes in credit policies or customer behavior.
Payables Turnover Ratio Analysis:
- The payables turnover ratio has generally decreased over the years, indicating a longer time taken to pay suppliers.
- A declining ratio could signify potential liquidity issues or changes in payment terms with suppliers.
Working Capital Turnover Ratio Analysis:
- The working capital turnover ratio has consistently shown an upward trend, reflecting the company's ability to generate revenues efficiently relative to its working capital.
- A higher turnover ratio indicates effective utilization of working capital to drive sales.
Overall, analyzing these activity ratios provides insights into Steven Madden Ltd's efficiency in managing inventory, receivables, payables, and working capital to drive profitability and operational performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 69.86 | 75.20 | 70.06 | 61.02 | 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 |
| Days of sales outstanding (DSO) | days | — | 0.67 | 0.54 | 0.86 | — | 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 |
| Number of days of payables | days | 56.10 | 63.14 | 55.02 | 51.41 | 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 |
The Days of Inventory on Hand (DOH) for Steven Madden Ltd has fluctuated over the years, ranging from a low of 34.79 days to a high of 86.21 days. The company seems to manage its inventory levels more efficiently in recent periods, with a decreasing trend observed in more recent quarters.
In terms of Days of Sales Outstanding (DSO), Steven Madden Ltd had varying collection periods, ranging from as high as 86.47 days to as low as 0.54 days. The company showed significant improvements in its collection efficiency in the latter quarters, achieving extremely low DSO levels which indicate a faster conversion of sales into cash.
The Number of Days of Payables for Steven Madden Ltd also fluctuated, with periods ranging from 17.61 days to 63.14 days. The company appears to have shorter payment cycles in recent quarters, which may positively impact its cash flow by extending the time taken to make payments.
Overall, analyzing these activity ratios provides insight into Steven Madden Ltd's performance in managing its inventory, collecting receivables, and handling payables. The trend towards more efficient inventory management and shorter collection and payment cycles in recent quarters bodes well for the company's working capital management and overall financial health.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 39.78 | 41.97 | 43.79 | 43.59 | 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 |
| Total asset turnover | 1.62 | 1.52 | 1.56 | 1.59 | 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 |
Based on the provided data, let's analyze Steven Madden Ltd's long-term activity ratios:
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.
- The trend of Steven Madden Ltd's fixed asset turnover ratio shows an initial increase from March 31, 2020, to June 30, 2022, indicating improving efficiency in generating revenue from fixed assets.
- However, the ratio peaked at 62.91 on June 30, 2022, and has since experienced a downward trend, reaching 39.78 on December 31, 2024. This suggests a possible decline in the effectiveness of utilizing fixed assets to generate sales.
2. Total Asset Turnover:
- The total asset turnover ratio reflects how efficiently the company is using all its assets to generate revenue.
- Steven Madden Ltd's total asset turnover ratio fluctuated over the analyzed period.
- It experienced a significant increase from 1.51 on March 31, 2020, to 1.82 on September 30, 2022, indicating improved efficiency in utilizing total assets to generate sales during this period.
- The ratio has subsequently shown some variability but generally remained above 1, implying the company continues to effectively generate revenue from its asset base.
In conclusion, while the total asset turnover ratio reflects overall efficiency in utilizing assets to generate revenue, the fixed asset turnover ratio specifically highlights the efficiency of fixed asset utilization. Steven Madden Ltd should continue to monitor both ratios to ensure optimal performance in leveraging its asset base for revenue generation.