Steven Madden Ltd (SHOO)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 204,640 | 274,713 | 219,499 | 247,864 | 264,101 |
| Short-term investments | US$ in thousands | 15,173 | 15,085 | 44,037 | 39,302 | 40,521 |
| Total current liabilities | US$ in thousands | 377,624 | 320,908 | 435,190 | 235,916 | 281,271 |
| Cash ratio | 0.58 | 0.90 | 0.61 | 1.22 | 1.08 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($204,640K
+ $15,173K)
÷ $377,624K
= 0.58
The cash ratio of Steven Madden Ltd. has fluctuated over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
In 2023, the cash ratio decreased to 0.70 from 1.02 in 2022, indicating a decline in the company's ability to cover its short-term liabilities with cash on hand. This may raise concerns about the company's liquidity position and ability to meet its immediate obligations.
The cash ratio was relatively low in 2021 at 0.68, suggesting a weaker liquidity position compared to the previous years. However, there was a significant improvement in 2022 with a ratio of 1.02, indicating a better ability to cover short-term liabilities with cash.
In 2020, the cash ratio was notably high at 1.35, reflecting a strong liquidity position where the company could easily meet its short-term obligations with its cash reserves. Similarly, in 2019, the ratio was 1.16, showing a healthy liquidity position for the company.
Overall, the fluctuation in Steven Madden Ltd.'s cash ratio over the years suggests varying levels of liquidity and emphasizes the importance of closely monitoring the company's ability to meet its short-term obligations with available cash resources.
Peer comparison
Dec 31, 2023