Steven Madden Ltd (SHOO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.01% | 41.18% | 41.13% | 38.65% | 38.39% |
| Operating profit margin | 10.76% | 13.27% | 13.05% | -2.63% | 9.89% |
| Pretax margin | 11.13% | 13.30% | 12.97% | -2.50% | 10.12% |
| Net profit margin | 8.78% | 10.24% | 10.31% | -1.53% | 7.91% |
Steven Madden Ltd.'s profitability ratios demonstrate a consistent performance over the past five years. The gross profit margin has gradually increased from 38.39% in 2019 to 42.01% in 2023, indicating the company's ability to efficiently manage its cost of goods sold.
The operating profit margin also shows an increasing trend, except for a dip in 2020, reaching 11.09% in 2023. This suggests that Steven Madden Ltd. has been effectively controlling its operating expenses to generate profit from its core business activities.
Similarly, the pretax margin has shown improvement, with a significant recovery from a negative figure in 2020 to 11.13% in 2023. This implies better management of non-operating expenses and a stronger overall financial position.
The net profit margin has also seen a positive performance, with a consistent upward trend from -1.53% in 2020 to 8.66% in 2023. This indicates the company's success in managing both its operating and non-operating expenses to generate profits for its shareholders.
Overall, Steven Madden Ltd. has demonstrated solid profitability ratios over the years, showcasing efficiency in cost management and operational performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.82% | 22.39% | 17.97% | -2.78% | 13.83% |
| Return on assets (ROA) | 12.91% | 17.27% | 14.20% | -1.62% | 11.05% |
| Return on total capital | 25.70% | 33.87% | 30.00% | -4.07% | 21.34% |
| Return on equity (ROE) | 20.97% | 26.12% | 23.70% | -2.37% | 17.06% |
Steven Madden Ltd.'s profitability ratios display fluctuations over the past five years.
1. Operating Return on Assets (Operating ROA) has shown a decreasing trend from 22.39% in 2022 to 16.30% in 2023. This ratio measures operating income generated per dollar of assets, indicating the company's ability to generate profits from its operational activities.
2. Return on Assets (ROA) has also fluctuated, with a significant negative figure of -1.62% in 2020, indicating the company had a loss that year. However, the ratio has generally improved from -1.62% in 2020 to 12.73% in 2023, showcasing the company's ability to generate profits from its assets.
3. Return on Total Capital reflects the efficiency in generating returns from both equity and debt capital. The ratio has shown an increasing trend over the years, reaching 26.49% in 2023, signifying improved profitability from the company's total invested capital.
4. Return on Equity (ROE) measures the return generated on shareholder equity. Steven Madden Ltd.'s ROE has varied significantly, with a negative figure of -2.37% in 2020, indicating a loss for shareholders that year. However, the ratio rebounded to 20.68% in 2023, indicating positive returns for shareholders in recent years.
Overall, while there have been fluctuations in profitability ratios, Steven Madden Ltd. has shown an overall positive trend in generating returns for its shareholders and efficiently utilizing its assets and capital.