Wolverine World Wide Inc (WWW)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,370,400 | 1,614,400 | 1,385,000 | 1,055,500 | 1,349,900 |
| Inventory | US$ in thousands | 373,600 | 745,200 | 365,500 | 243,100 | 348,200 |
| Inventory turnover | 3.67 | 2.17 | 3.79 | 4.34 | 3.88 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,370,400K ÷ $373,600K
= 3.67
Wolverine World Wide Inc's inventory turnover has fluctuated over the past five years. The trend indicates that the company's efficiency in managing its inventory levels has varied. In 2023, the inventory turnover ratio improved to 3.67 from 2.17 in 2022, suggesting that the company sold and replaced its inventory 3.67 times during the year. This may indicate quicker inventory turnover or more effective sales strategies.
In 2021, the inventory turnover ratio was 3.79, which was higher than in 2020 (4.34) and 2019 (3.88). This suggests that the company may have experienced challenges in optimizing its inventory turnover in those years. An inventory turnover ratio below the industry average could indicate overstocking or slow sales, while a high ratio may imply efficient inventory management but potential stockouts.
Overall, Wolverine World Wide Inc should monitor its inventory turnover closely to ensure optimal inventory management, balancing the costs of holding inventory with the risk of stockouts and obsolescence. Further analysis of the company's inventory turnover ratio in conjunction with other financial metrics could provide insights into its operational efficiency and competitiveness in the market.
Peer comparison
Dec 31, 2023