Steven Madden Ltd (SHOO)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,411,770 | 1,457,130 | 1,375,060 | 1,304,150 | 1,347,940 | 1,292,230 | 1,270,240 | 1,205,120 | 1,257,990 | 1,226,240 | 1,313,290 | 1,278,530 | 1,355,540 | 1,300,060 | 1,173,140 | 1,168,940 | 1,137,760 | 1,104,410 | 1,132,390 | 1,145,900 |
| 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 |
| Financial leverage ratio | 1.67 | 1.75 | 1.70 | 1.58 | 1.62 | 1.54 | 1.54 | 1.47 | 1.51 | 1.46 | 1.58 | 1.53 | 1.67 | 1.63 | 1.52 | 1.48 | 1.47 | 1.46 | 1.50 | 1.51 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,411,770K ÷ $847,719K
= 1.67
The financial leverage ratio of Steven Madden Ltd has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio ranged from a low of 1.46 to a high of 1.75 during this timeframe.
The trend in the financial leverage ratio indicates some variability but appears to have generally increased over the period, with intermittent peaks and troughs. This suggests the company may have been taking on more debt relative to equity in its capital structure.
A financial leverage ratio above 1 indicates that the company is financing a portion of its assets with debt, which can amplify returns when operating effectively but also increase financial risk during difficult economic conditions.
It would be beneficial to further investigate the reasons behind the changes in the financial leverage ratio to understand the company's debt management strategy and its potential impact on overall financial health.
Peer comparison
Dec 31, 2024