Steven Madden Ltd (SHOO)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,981,580 | 2,122,010 | 1,866,140 | 1,201,810 | 1,787,160 |
| Total current assets | US$ in thousands | 854,832 | 843,557 | 944,660 | 698,241 | 718,879 |
| Total current liabilities | US$ in thousands | 377,624 | 320,908 | 435,190 | 235,916 | 281,271 |
| Working capital turnover | 4.15 | 4.06 | 3.66 | 2.60 | 4.08 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,981,580K ÷ ($854,832K – $377,624K)
= 4.15
The working capital turnover ratio for Steven Madden Ltd. has shown a fluctuating trend over the past five years. In 2023, the ratio increased to 4.15, implying that the company generated $4.15 in net sales for every $1 of working capital invested. This indicates a more efficient utilization of working capital compared to the previous years, where the ratios ranged from 2.60 to 4.08.
An increasing working capital turnover ratio suggests that the company is managing its working capital more effectively to support sales growth. It indicates that Steven Madden Ltd. is able to quickly convert its working capital into sales, which is a positive signal of operational efficiency and liquidity management.
Overall, the improving trend in the working capital turnover ratio for Steven Madden Ltd. reflects positively on the company's ability to efficiently utilize its working capital to drive sales and support its business operations.
Peer comparison
Dec 31, 2023