Steven Madden Ltd (SHOO)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 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 | 69.13 | 80.11 | 72.64 | 75.25 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 72.73 + — – 51.18
= 21.55
The cash conversion cycle of Steven Madden Ltd. has shown fluctuations over the past quarters. The trend indicates that the company takes varying amounts of time to convert its investments in inventory and other resources into cash.
In Q4 2023, the cash conversion cycle improved to 88.04 days compared to the previous quarter at 97.09 days, but it was still higher than in Q1 and Q2 of the same year. This may suggest better management of inventory or improved collections from customers.
Looking back to Q3 2022, the cash conversion cycle was at a higher level of 118.98 days, indicating the company faced challenges in efficiently managing its working capital. Subsequently, there was a significant improvement by Q1 2023, suggesting the company implemented better strategies to streamline its cash conversion process.
Overall, the variations in the cash conversion cycle of Steven Madden Ltd. reflect the company's effectiveness in managing its operations, inventory, and receivables. Monitoring this metric over time can provide insight into the company's liquidity management and operational efficiency.
Peer comparison
Dec 31, 2023