Steven Madden Ltd (SHOO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 41.04% | 42.01% | 41.18% | 41.13% | 38.65% |
| Operating profit margin | 9.85% | 10.76% | 13.27% | 13.05% | -2.63% |
| Pretax margin | 9.81% | 11.13% | 13.30% | 12.97% | -2.50% |
| Net profit margin | 7.42% | 8.78% | 10.24% | 10.31% | -1.53% |
Steven Madden Ltd has shown an improvement in its gross profit margin over the past five years, increasing from 38.65% in 2020 to 41.04% in 2024. This indicates the company has been able to effectively manage its production costs and maintain a healthy level of profitability from its core operations.
However, there has been some volatility in the operating profit margin, starting at -2.63% in 2020, then increasing to 13.27% in 2022, before declining to 9.85% in 2024. This suggests fluctuations in the company's operating expenses and efficiency in generating profits from its day-to-day operations.
The pretax margin has also exhibited variability, ranging from -2.50% in 2020 to 13.30% in 2022, and then decreasing to 9.81% in 2024. This metric reflects the company's ability to manage its tax obligations and generate profits before accounting for taxes.
Similarly, the net profit margin has fluctuated over the years, showing a decline from 10.31% in 2021 to 7.42% in 2024. This ratio indicates the company's overall profitability after factoring in all expenses, including taxes and interest payments.
Overall, while Steven Madden Ltd has been able to improve its gross profit margin, there are some fluctuations in operating, pretax, and net profit margins, highlighting the importance of closely monitoring and managing expenses to sustain and enhance profitability levels in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.93% | 15.82% | 22.39% | 17.97% | -2.78% |
| Return on assets (ROA) | 12.00% | 12.91% | 17.27% | 14.20% | -1.62% |
| Return on total capital | 26.53% | 25.70% | 33.87% | 30.00% | -4.07% |
| Return on equity (ROE) | 19.98% | 20.97% | 26.12% | 23.70% | -2.37% |
Based on the provided data for Steven Madden Ltd, we can analyze the profitability ratios as follows:
1. Operating Return on Assets (Operating ROA):
- Steven Madden Ltd's Operating ROA has shown an improvement over the years, increasing from -2.78% in 2020 to 22.39% in 2022. However, there was a slight decrease in 2023 and 2024, with values of 15.82% and 15.93% respectively.
2. Return on Assets (ROA):
- The Return on Assets for Steven Madden Ltd also exhibits a positive trend, with a significant increase from -1.62% in 2020 to 17.27% in 2022. It slightly decreased to 12.00% by the end of 2024.
3. Return on Total Capital:
- The Return on Total Capital reflects the company's ability to generate returns for all its capital providers. Steven Madden Ltd demonstrated a remarkable improvement in this ratio, escalating from -4.07% in 2020 to 33.87% in 2022. The ratio slightly decreased to 26.53% by the end of 2024.
4. Return on Equity (ROE):
- ROE indicates the return generated for the shareholders. Steven Madden Ltd's ROE improved consistently from -2.37% in 2020 to 26.12% in 2022. The subsequent years saw a slight decline in the ratio to 19.98% in 2024.
Overall, Steven Madden Ltd has shown positive trends in its profitability ratios, indicating that the company has been effectively generating returns for its assets, capital providers, and shareholders over the years, with some fluctuations in performance observed in recent periods.