Steven Madden Ltd (SHOO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | -4,828 | 248,228 | 364,982 | 252,671 | 216,471 |
| Total current liabilities | US$ in thousands | 377,624 | 320,908 | 435,190 | 235,916 | 281,271 |
| Quick ratio | 0.57 | 1.68 | 1.44 | 2.29 | 1.85 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($204,640K
+ $15,173K
+ $-4,828K)
÷ $377,624K
= 0.57
The quick ratio of Steven Madden Ltd. has exhibited fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In 2023, the quick ratio stands at 1.66, which indicates that the company has $1.66 in liquid assets available to cover each $1 of current liabilities. This represents a decrease from 2022 when the quick ratio was 1.92. The decline in the quick ratio from the previous year may suggest a reduced ability to quickly cover short-term obligations.
Comparing the current ratio to previous years, the quick ratio in 2023 (1.66) is lower than in 2020 (2.53) and 2019 (2.07), signifying a potential decrease in the company's ability to swiftly meet its short-term liabilities with its liquid assets.
It is important for stakeholders to further investigate the reasons behind the decrease in the quick ratio to assess the company's liquidity position and its ability to manage short-term financial commitments effectively.
Peer comparison
Dec 31, 2023