Steven Madden Ltd (SHOO)

Liquidity ratios

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
Current ratio 2.16 2.09 2.12 2.43 2.26 2.57 2.61 2.99 2.63 2.92 2.39 2.51 2.17 2.27 2.66 2.86 2.96 2.97 2.67 2.75
Quick ratio 0.48 0.34 0.48 0.44 0.57 0.64 0.88 0.90 1.68 0.56 0.51 0.56 1.44 0.70 2.00 2.18 2.29 2.25 2.02 2.05
Cash ratio 0.49 0.33 0.47 0.43 0.58 0.62 0.86 0.87 0.90 0.53 0.48 0.52 0.61 0.67 1.08 1.06 1.22 1.18 1.50 1.05

The current ratio of Steven Madden Ltd has shown some fluctuations over the past few years, ranging from a low of 2.09 at September 30, 2024, to a high of 2.99 at March 31, 2023. Overall, the company has maintained a healthy current ratio above 2, indicating that it has more than enough current assets to cover its short-term liabilities.

In contrast, the quick ratio of the company has experienced more variability, dropping as low as 0.34 at September 30, 2024. This suggests that Steven Madden Ltd may have faced some challenges in meeting its short-term obligations using only its most liquid assets. However, there have been periods, such as December 31, 2020, and December 31, 2022, where the quick ratio was above 1, indicating a stronger ability to cover immediate liabilities with its quick assets.

The cash ratio, representing the most stringent test of liquidity, has generally been lower than the current and quick ratios. It has ranged from a high of 1.50 at June 30, 2020, to a low of 0.33 at September 30, 2024. This ratio reveals the company's ability to settle its current liabilities solely with its cash and cash equivalents.

Overall, while the fluctuations in the quick and cash ratios suggest some variability in Steven Madden Ltd's ability to meet its short-term obligations, the consistently strong current ratios demonstrate a solid liquidity position and ability to cover current liabilities with current assets over the period under review.

Additional liquidity measure

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
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

The cash conversion cycle of Steven Madden Ltd has shown fluctuations over the past years. The cash conversion cycle represents the time taken by a company to convert its investments in inventory and other resources into cash from sales.

Analyzing the data provided, we observe the following trends:

- The cash conversion cycle fluctuated between a high of 110.74 days on December 31, 2021, and a low of 10.47 days on March 31, 2024.
- There is a downward trend in the cash conversion cycle from 2021 to 2024, indicating efficiency in managing cash flow and working capital.
- The company managed to significantly reduce its cash conversion cycle from 110.74 days on December 31, 2021, to 13.76 days on December 31, 2024, showing improved efficiency in converting assets into cash.
- The shortest cash conversion cycle was observed on March 31, 2024, at 10.47 days, indicating the company's ability to quickly convert its assets into cash.

Overall, it is evident that Steven Madden Ltd has been able to effectively manage its cash conversion cycle, leading to improved liquidity and operational efficiency over the analyzed period.