Steven Madden Ltd (SHOO)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 13.76 | 12.73 | 15.58 | 10.47 | 21.55 | 22.13 | 26.30 | 25.40 | 71.42 | 41.66 | 58.81 | 35.91 | 110.74 | 32.25 | 77.76 | 90.23 | 90.36 | 87.58 | 56.88 | 57.65 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 69.86 + — – 56.10
= 13.76
The cash conversion cycle of Steven Madden Ltd fluctuated over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time in days it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Initially, the company's cash conversion cycle was around 57-58 days in the first half of 2020, indicating a moderate efficiency in managing its working capital. However, the cycle extended significantly in the latter half of 2020 and early 2021, surpassing 90 days. This increase may suggest potential inefficiencies in managing inventory, receivables, and payables during this period.
From September 30, 2021, to December 31, 2022, there was a notable improvement in the cash conversion cycle, with days decreasing to the range of 22-71 days. This improvement suggests enhanced working capital management, resulting in a quicker conversion of investments into cash flows.
By the end of December 31, 2024, the cash conversion cycle had further improved to around 13-15 days, indicating a more efficient process of converting resources into cash. A shorter cash conversion cycle is generally favorable as it implies that the company is able to generate cash quickly from its operational activities.
Overall, the trend in Steven Madden Ltd's cash conversion cycle reflects fluctuations in its efficiency in managing working capital and converting investments into cash. The company demonstrated improvements over the years, with the cycle becoming more favorable by the end of the analyzed period.
Peer comparison
Dec 31, 2024