Steven Madden Ltd (SHOO)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 173,975 | 217,217 | 192,459 | -18,397 | 141,311 |
| Total stockholders’ equity | US$ in thousands | 829,598 | 831,553 | 812,098 | 776,586 | 828,501 |
| ROE | 20.97% | 26.12% | 23.70% | -2.37% | 17.06% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $173,975K ÷ $829,598K
= 20.97%
The Return on Equity (ROE) of Steven Madden Ltd. has shown fluctuations over the past five years. In 2023, the ROE stands at 20.68%, representing a decrease from the previous year's level of 25.98%. Despite this decrease, the company's ROE remains relatively strong compared to the negative ROE of -2.37% in 2020.
The upward trend from 2019 to 2022 indicates an improvement in the company's ability to generate profits from shareholder equity. However, the recent decrease in ROE in 2023 may signal potential challenges or changes in the company's operations or financial structure that are impacting its profitability relative to the equity invested by shareholders.
It is essential for stakeholders to closely monitor the factors influencing ROE to assess the company's overall financial health and long-term sustainability. Additionally, management should focus on strategies to optimize ROE and enhance shareholder value in the future.
Peer comparison
Dec 31, 2023