Steven Madden Ltd (SHOO)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 169,390 | 173,975 | 217,217 | 192,459 | -18,397 |
| Total stockholders’ equity | US$ in thousands | 847,719 | 829,598 | 831,553 | 812,098 | 776,586 |
| ROE | 19.98% | 20.97% | 26.12% | 23.70% | -2.37% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $169,390K ÷ $847,719K
= 19.98%
Steven Madden Ltd's return on equity (ROE) has shown significant improvement over the years based on the data provided. In 2020, the ROE was negative at -2.37%, indicating that the company's net income was insufficient to cover its shareholders' equity.
However, the company's ROE rebounded strongly in 2021, reaching 23.70%, which is a positive sign of improved profitability and efficiency in the utilization of shareholders' equity. This trend continued into 2022 and 2023, with ROE increasing to 26.12% and 20.97% respectively, showcasing sustained performance.
In 2024, although there was a slight decline in ROE to 19.98%, the company still maintained a commendable return on equity, indicating that it continues to generate profits relative to the shareholders' investment.
Overall, the increasing trend in Steven Madden Ltd's ROE from 2020 to 2023, followed by a relatively stable performance in 2024, demonstrates the company's ability to generate value for its shareholders and effectively utilize their investment to generate profits.
Peer comparison
Dec 31, 2024