Steven Madden Ltd (SHOO)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 0 | 7,400 | 7,400 | 9,356 | 11,320 | 4,490 | 5,830 | 5,165 | 3,258 | 3,201 | 2,063 | 1,549 | 1,529 | 79,386 | 144,921 | 145,059 | 162,662 | 85,810 | 20,381 | 25,843 |
| Interest coverage | — | 29.48 | 30.58 | 23.88 | 18.84 | 47.45 | 35.86 | 44.58 | 86.45 | 100.38 | 160.43 | 202.36 | 159.32 | 2.34 | 0.65 | 0.16 | -0.19 | -0.39 | 1.84 | 4.10 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $224,939K ÷ $0K
= —
To analyze Steven Madden Ltd's interest coverage based on the provided data, let's first understand what interest coverage ratio represents. The interest coverage ratio indicates a company's ability to pay its interest expenses on outstanding debt. A higher ratio implies that the company is more capable of meeting its interest obligations.
Looking at the historical trend of Steven Madden Ltd's interest coverage ratio:
- The interest coverage ratio declined steadily from March 2020 to December 2021, reaching negative values in September and December 2020, as well as March 2021 and June 2021. These negative values suggest that Steven Madden Ltd had difficulty covering its interest expenses with its operating income during these periods.
- However, starting from September 2021, the interest coverage ratio improved significantly, indicating a marked improvement in the company's ability to cover its interest charges. The coverage ratio showed a substantial increase from 2.34 in September 2021 to a peak of 202.36 in March 2022.
- Subsequently, the interest coverage ratio exhibited some fluctuations but remained relatively high, signaling that Steven Madden Ltd's profitability was sufficient to cover its interest payments comfortably.
Overall, the data indicates that Steven Madden Ltd experienced financial strain and struggled to cover its interest expenses during certain periods but managed to enhance its financial performance significantly in the following quarters, leading to a substantial improvement in its interest coverage ratio from September 2021 onwards.
Peer comparison
Dec 31, 2024