Steven Madden Ltd (SHOO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,347,940 | 1,257,990 | 1,355,540 | 1,137,760 | 1,278,650 |
| Total stockholders’ equity | US$ in thousands | 829,598 | 831,553 | 812,098 | 776,586 | 828,501 |
| Financial leverage ratio | 1.62 | 1.51 | 1.67 | 1.47 | 1.54 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,347,940K ÷ $829,598K
= 1.62
The financial leverage ratio of Steven Madden Ltd. has fluctuated over the past five years. The ratio indicates the proportion of the company's debt to its equity, with higher values suggesting higher financial leverage and potential financial risk.
In 2023, the financial leverage ratio increased to 1.62 from 1.51 in 2022, signaling an increase in the company's reliance on debt financing relative to equity. This could indicate a strategy to fuel expansion or growth through debt, which may increase the company's financial risk.
In 2021, the ratio was relatively high at 1.67, suggesting that the company had a higher level of financial leverage compared to previous years. This could indicate that the company might have been aggressively utilizing debt to fund its operations or investments.
In 2020, the ratio was 1.47, lower than in 2021, indicating a decrease in financial leverage. This could suggest that the company may have deleveraged or reduced its reliance on debt during this period.
In 2019, the ratio stood at 1.54, slightly higher than in 2020 but lower than in 2021. This suggests that the company had moderate financial leverage relative to its equity in that year.
Overall, the fluctuation in Steven Madden Ltd.'s financial leverage ratio over the years reflects varying levels of debt utilization and financial risk management by the company. Investors and stakeholders may want to further investigate the reasons behind these changes to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023