Steven Madden Ltd (SHOO)

Liquidity ratios

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
Current ratio 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 2.56 2.80 2.62 3.24
Quick ratio 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 1.85 1.95 1.89 2.38
Cash ratio 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 1.08 0.77 0.88 1.09

The liquidity ratios of Steven Madden Ltd. have shown fluctuations over the past eight quarters.

The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has ranged from a low of 2.26 in Q4 2023 to a high of 2.99 in Q1 2023. The current ratio has generally been above 2, indicating that Steven Madden Ltd. has a strong ability to cover its short-term liabilities with its current assets.

The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from current assets. It has varied between 1.58 in Q2 2022 and 2.29 in Q1 2023, with a recent value of 1.95 in Q3 2023. The quick ratio above 1 suggests that Steven Madden Ltd. can meet its short-term obligations without relying on selling inventory.

The cash ratio, the most stringent liquidity measure, focuses solely on the cash and cash equivalents relative to current liabilities. The values have fluctuated between 0.59 and 1.02 over the past quarters, with the recent value at 0.74 in Q3 2023. A higher cash ratio indicates a stronger ability to pay off short-term debts using cash on hand.

Overall, the liquidity ratios of Steven Madden Ltd. suggest that the company has maintained a healthy liquidity position over the analyzed period, with the ability to meet its short-term obligations efficiently. Additional analysis and consideration of other financial metrics would provide a more comprehensive understanding of the company's financial health.

Additional liquidity measure

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
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

The cash conversion cycle of Steven Madden Ltd. has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle decreased to 88.04 days from 97.09 days in Q3 2023, indicating an improvement in the company's ability to convert its investments in inventory and accounts receivable into cash.

However, the Q4 2023 figure is still higher compared to Q4 2022, where the cash conversion cycle was 77.94 days. This suggests that Steven Madden Ltd. might be facing challenges in efficiently managing its working capital and liquidity in the current quarter.

It is worth noting that the highest cash conversion cycle was observed in Q3 2022 at 118.98 days, which was followed by a downward trend in the subsequent quarters. This indicates that the company has made some progress in streamlining its operations and improving its cash conversion efficiency since then.

Overall, Steven Madden Ltd. should continue to focus on optimizing its cash conversion cycle to ensure effective management of its working capital and improve its overall financial performance.