Steven Madden Ltd (SHOO)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | — | 7,392 | 676 | 1,529 | 160,832 |
| Interest coverage | — | 28.84 | 416.63 | 159.32 | -0.20 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $224,939K ÷ $—K
= —
The interest coverage ratio is a measure of a company's ability to pay its interest obligations on outstanding debt. Looking at Steven Madden Ltd's interest coverage over the past few years:
1. As of December 31, 2020, the interest coverage ratio was -0.20. A negative interest coverage ratio indicates that the company's earnings were not sufficient to cover its interest expenses.
2. By December 31, 2021, the interest coverage improved significantly to 159.32. This indicates that the company's earnings were more than sufficient to cover its interest expenses, reflecting a positive trend.
3. The interest coverage ratio continued to strengthen by December 31, 2022, reaching 416.63. This substantial increase suggests that Steven Madden Ltd had a comfortable cushion to meet its interest obligations.
4. However, by December 31, 2023, the interest coverage ratio dropped to 28.84. While still positive, this decrease indicates a potential weakening in the company's ability to cover its interest expenses compared to the previous year.
5. Unfortunately, the data for December 31, 2024 is not provided. It is important to note that a missing value for the interest coverage ratio for this year makes it difficult to assess the current financial health of Steven Madden Ltd accurately.
In conclusion, it is evident that Steven Madden Ltd experienced fluctuations in its interest coverage ratio over the years, with significant improvements followed by a slight decline. This highlights the importance of monitoring this metric closely to ensure the company's ability to meet its interest obligations and manage its debt effectively.
Peer comparison
Dec 31, 2024