Steven Madden Ltd (SHOO)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.26 | 2.63 | 2.17 | 2.96 | 2.56 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $854,832K ÷ $377,624K
= 2.26
The current ratio of Steven Madden Ltd. has fluctuated over the past five years, ranging from a low of 2.17 in 2021 to a high of 2.96 in 2020. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.
A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign of liquidity. Steven Madden Ltd. has consistently maintained current ratios above 2 over the period, suggesting a strong ability to meet its short-term obligations.
The downward trend in the current ratio from 2020 to 2021 may indicate a relative decrease in liquidity during that period, potentially due to changes in the company's current asset or current liability composition. However, the subsequent increase in the current ratio in 2022 and 2023 shows an improvement in liquidity.
Overall, the current ratio trend indicates that Steven Madden Ltd. has generally maintained a healthy liquidity position over the past five years, with current assets substantially exceeding current liabilities. However, further analysis of the components of current assets and liabilities would provide a more detailed understanding of the company's liquidity management.
Peer comparison
Dec 31, 2023