Steven Madden Ltd (SHOO)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 224,939 | 213,222 | 281,644 | 243,597 | -31,605 |
| Total assets | US$ in thousands | 1,411,770 | 1,347,940 | 1,257,990 | 1,355,540 | 1,137,760 |
| Operating ROA | 15.93% | 15.82% | 22.39% | 17.97% | -2.78% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $224,939K ÷ $1,411,770K
= 15.93%
The operating return on assets (operating ROA) of Steven Madden Ltd has shown significant fluctuations over the years based on the provided data.
In December 2020, the operating ROA was negative at -2.78%, indicating that the company was not effectively generating operating profit relative to its total assets.
However, there was a notable turnaround in December 2021, with the operating ROA jumping to 17.97%. This suggests that the company improved its operational efficiency and profitability in utilizing its assets to generate operating income.
The trend continued to strengthen in December 2022, with the operating ROA further increasing to 22.39%, reflecting the company's ability to generate higher operating income relative to its asset base.
In December 2023 and December 2024, the operating ROA decreased slightly to 15.82% and 15.93%, respectively. Although there was a slight decrease, the operating ROA remained at a respectable level, indicating that the company continued to efficiently utilize its assets to generate operating profits during these periods.
Overall, the fluctuation in operating ROA for Steven Madden Ltd indicates varying levels of operational efficiency and profitability over the years, with particularly strong performance in 2022. It would be important for the company to monitor this ratio to ensure continued effective asset utilization in driving operating income.
Peer comparison
Dec 31, 2024