Wolverine World Wide Inc (WWW)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 973,500 | 1,370,400 | 1,614,400 | 1,385,000 | 1,055,500 |
| Inventory | US$ in thousands | 240,600 | 373,600 | 745,200 | 365,500 | 243,100 |
| Inventory turnover | 4.05 | 3.67 | 2.17 | 3.79 | 4.34 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $973,500K ÷ $240,600K
= 4.05
Based on the provided data for Wolverine World Wide Inc, the inventory turnover ratio has fluctuated over the years. In December 31, 2020, the inventory turnover ratio was 4.34, indicating that the company converted its inventory into sales approximately 4.34 times during that year.
Subsequently, there was a decrease in the inventory turnover ratio to 3.79 by December 31, 2021, suggesting a slightly slower rate of inventory turnover compared to the previous year. This could imply either an increase in average inventory levels or a decrease in sales during that period.
By December 31, 2022, the inventory turnover ratio dropped significantly to 2.17, signaling a notable decline in the efficiency of inventory management. A lower inventory turnover ratio can indicate potential liquidity issues, excess inventory levels, or challenges in selling goods.
However, there was an improvement in the inventory turnover ratio in the following years, reaching 3.67 by December 31, 2023, and 4.05 by December 31, 2024. These increases indicate a better utilization of inventory and may suggest more efficient inventory management practices or an increase in sales volume compared to previous years.
Overall, Wolverine World Wide Inc's inventory turnover ratio has shown variability, and the company may need to continue monitoring and managing its inventory effectively to ensure optimal utilization and financial performance.
Peer comparison
Dec 31, 2024