Wolverine World Wide Inc (WWW)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.05 | 3.67 | 2.17 | 3.79 | 4.34 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 11.29 | 14.41 | 17.32 | 16.76 | 3.60 |
Based on the activity ratios provided for Wolverine World Wide Inc, here is a detailed analysis:
1. Inventory Turnover:
- The inventory turnover ratio indicates how efficiently the company is managing its inventory. A higher ratio is generally preferred as it implies faster inventory turnover.
- The trend for Wolverine World Wide Inc shows a fluctuation in inventory turnover over the years, with a peak of 4.34 in 2020 and a low of 2.17 in 2022. However, the ratios have generally been above 3, indicating decent inventory management.
2. Receivables Turnover:
- Unfortunately, data for receivables turnover is not available for the years provided, which limits our analysis of how quickly the company is collecting its receivables.
3. Payables Turnover:
- Similar to receivables turnover, data for payables turnover is not available, which would have provided insights into the speed at which the company is paying its suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively the company generates revenue from its working capital. A higher ratio implies better utilization of working capital.
- Wolverine World Wide Inc's working capital turnover has shown a significant increase from 3.60 in 2020 to 17.32 in 2022, before declining to 11.29 in 2024. This suggests that the company has been efficient in generating revenue from its working capital in the last few years.
Overall, while the inventory turnover and working capital turnover ratios indicate reasonably efficient operations in managing inventory and working capital, the lack of data for receivables and payables turnover limits a comprehensive analysis of the company's overall working capital management and liquidity. Further information on receivables and payables turnover would provide a more complete picture of Wolverine World Wide Inc's financial efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 90.21 | 99.51 | 168.48 | 96.32 | 84.07 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data, let's analyze the activity ratios for Wolverine World Wide Inc:
1. Days of Inventory on Hand (DOH):
- In 2020, the company had 84.07 days of inventory on hand.
- This metric increased to 96.32 days in 2021, indicating a slight increase in the time it takes for the company to sell its inventory.
- There was a significant increase to 168.48 days in 2022, suggesting potential issues with inventory management or slower inventory turnover.
- However, by 2023, the days of inventory on hand decreased to 99.51 days, showing some improvement.
- In 2024, the DOH further decreased to 90.21 days, indicating a more efficient management of inventory compared to the previous year.
2. Days of Sales Outstanding (DSO):
- Unfortunately, there is no data provided for Days of Sales Outstanding for any of the years, which makes evaluating the company's efficiency in collecting receivables challenging.
3. Number of Days of Payables:
- Similar to DSO, data for the number of days of payables is unavailable for all the years, hindering the assessment of the company's payment practices and cash flow management.
4. Overall Assessment:
- The information provided on DOH highlights fluctuations in inventory management efficiency over the years.
- Although DSO and the number of days of payables are missing, having these metrics would provide a more comprehensive view of the company's overall working capital management and liquidity position.
- Further analysis of these ratios alongside profitability and liquidity metrics would be beneficial to gain a more holistic understanding of Wolverine World Wide Inc's operational effectiveness and financial health.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 19.71 | 9.04 | 14.37 |
| Total asset turnover | 1.05 | 1.09 | 1.08 | 0.93 | 0.84 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Wolverine World Wide Inc, we observe a fluctuation in the fixed asset turnover ratio over the years. In 2020, the ratio was 14.37, indicating that for every dollar invested in fixed assets, the company generated $14.37 in sales. However, this ratio decreased to 9.04 in 2021 and then significantly increased to 19.71 in 2022. The data for 2023 and 2024 is not available.
The total asset turnover ratio reflects how well a company is utilizing all its assets to generate revenue. Wolverine World Wide Inc's total asset turnover ratio has shown an increasing trend over the years. In 2020, the ratio was 0.84, indicating that the company generated $0.84 in sales for every dollar of assets. This ratio improved to 0.93 in 2021, 1.08 in 2022, 1.09 in 2023, and then slightly decreased to 1.05 in 2024. This suggests that the company is becoming more efficient in using its total assets to generate sales.
Overall, the analysis of Wolverine World Wide Inc's long-term activity ratios indicates that the company has been improving its efficiency in utilizing both fixed assets and total assets to generate revenue, with some fluctuations in the fixed asset turnover ratio.