Wolverine World Wide Inc (WWW)
Payables 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 |
| Payables | US$ in thousands | 206,000 | 272,200 | 222,100 | 185,000 | 202,100 |
| Payables turnover | 6.65 | 5.93 | 6.24 | 5.71 | 6.68 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,370,400K ÷ $206,000K
= 6.65
The payables turnover ratio for Wolverine World Wide Inc has fluctuated over the past five years, with values ranging from 5.71 to 6.68. The ratio indicates the company's efficiency in managing its accounts payable and paying off its suppliers. A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently within a year, which can be positive as it may reflect strong cash flow management.
Wolverine World Wide Inc's payables turnover ratio increased in 2023 to 6.65 from 5.93 in 2022. This improvement indicates that the company was able to manage its accounts payable more effectively in 2023, possibly negotiating more favorable payment terms or optimizing its cash flow cycle.
Overall, a consistently high or improving payables turnover ratio can indicate that the company is efficiently managing its working capital and relationships with suppliers. However, it is important to consider industry norms and trends over time to fully assess the effectiveness of Wolverine World Wide Inc's payables management strategy.
Peer comparison
Dec 31, 2023