Steven Madden Ltd (SHOO)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 224,939 | 213,222 | 281,644 | 243,597 | -31,605 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 847,719 | 829,598 | 831,553 | 812,098 | 776,586 |
| Return on total capital | 26.53% | 25.70% | 33.87% | 30.00% | -4.07% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $224,939K ÷ ($—K + $847,719K)
= 26.53%
Steven Madden Ltd's return on total capital has shown significant improvement over the past five years. Starting from a negative value of -4.07% in December 2020, the company turned around its performance and achieved a remarkable return of 30.00% in December 2021. This positive trend continued with returns of 33.87% in December 2022, 25.70% in December 2023, and 26.53% in December 2024.
The consistent increase in return on total capital indicates that Steven Madden Ltd has been effectively utilizing its capital to generate profits. This improving trend suggests that the company's management has been successful in creating value for shareholders through efficient capital deployment and operational performance. Investors may view this as a positive indicator of the company's financial health and ability to generate returns on invested capital.
Peer comparison
Dec 31, 2024