Steven Madden Ltd (SHOO)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 224,939 | 218,127 | 226,287 | 223,457 | 213,222 | 213,046 | 209,060 | 230,259 | 281,644 | 321,304 | 330,970 | 313,449 | 243,597 | 185,523 | 94,107 | 22,687 | -31,605 | -33,468 | 37,571 | 105,906 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 847,719 | 833,923 | 808,279 | 825,236 | 829,598 | 837,038 | 824,516 | 821,042 | 831,553 | 842,303 | 833,534 | 835,215 | 812,098 | 798,830 | 774,335 | 787,528 | 776,586 | 756,120 | 755,084 | 761,207 |
| Return on total capital | 26.53% | 26.16% | 28.00% | 27.08% | 25.70% | 25.45% | 25.36% | 28.04% | 33.87% | 38.15% | 39.71% | 37.53% | 30.00% | 23.22% | 12.15% | 2.88% | -4.07% | -4.43% | 4.98% | 13.91% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $224,939K ÷ ($—K + $847,719K)
= 26.53%
Return on total capital is a key financial ratio that measures a company's ability to generate profits from its total invested capital, including both debt and equity. Steven Madden Ltd's return on total capital has shown fluctuations over the past few years.
From the data provided, we can see that the return on total capital for Steven Madden Ltd was relatively stable between March 2020 and September 2020, with values ranging from 13.91% to -4.43%. However, there was a significant improvement in profitability from December 2021 onwards, with the ratio consistently increasing.
The return on total capital increased from 30.00% in December 2021 to a peak of 39.71% in June 2022, indicating that the company was effectively utilizing its capital to generate earnings during this period. Subsequently, the ratio experienced a slight decline but remained relatively high, with values ranging from 25.36% to 28.00% between March 2023 and June 2024.
Overall, the trend in Steven Madden Ltd's return on total capital demonstrates an improvement in the company's efficiency in generating returns from its invested capital over the years, with the ratio showing a generally upward trajectory in recent periods. This indicates a positive performance in terms of capital utilization and profitability for the company.
Peer comparison
Dec 31, 2024