Wolverine World Wide Inc (WWW)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.10 | 3.65 | 3.75 | 3.45 | 3.67 | 2.62 | 2.44 | 2.24 | 2.17 | 1.76 | 2.34 | 3.00 | 3.79 | 3.20 | 3.76 | 3.39 | 4.34 | 3.46 | 3.02 | 3.22 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 11.29 | 12.44 | 14.97 | 21.32 | 14.41 | 9.70 | 12.74 | 16.01 | 17.32 | 12.04 | 13.10 | 22.80 | 16.76 | 15.21 | 3.81 | 3.39 | 3.60 | 3.92 | 4.46 | 16.59 |
The Inventory Turnover ratio for Wolverine World Wide Inc has displayed some fluctuations over the periods analyzed, ranging from a low of 1.76 to a high of 4.10. This ratio indicates how effectively the company is managing its inventory levels, with a higher ratio generally being more favorable as it suggests a quicker turnover of inventory. The decreasing trend in the Inventory Turnover ratio from a peak of 4.10 in December 2024 to 2.17 in December 2022 may raise concerns about potential overstocking or slower sales.
Unfortunately, data for the Receivables Turnover and Payables Turnover ratios are not available, which limits our ability to assess how efficiently Wolverine World Wide Inc is collecting receivables from customers and managing its payables to suppliers.
The Working Capital Turnover ratio for the company has been quite variable, ranging from a high of 22.80 to a low of 3.39. This ratio measures how efficiently the company is utilizing its working capital to generate sales. A higher ratio indicates better efficiency in utilizing working capital. The significant fluctuations in this ratio over the periods suggest varying levels of efficiency in utilizing working capital to generate revenue. The notable increase in the Working Capital Turnover ratio from 3.39 in March 2021 to 16.76 in December 2021 indicates a substantial improvement in working capital efficiency during that period, which is a positive sign for the company's operations.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 89.07 | 99.95 | 97.35 | 105.79 | 99.51 | 139.28 | 149.79 | 163.15 | 168.48 | 207.87 | 156.12 | 121.65 | 96.32 | 114.20 | 97.17 | 107.81 | 84.07 | 105.39 | 120.79 | 113.43 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The analysis of Wolverine World Wide Inc's activity ratios reveals fluctuations in its Days of Inventory on Hand (DOH) over the past few years. The company's inventory holding period has shown significant variability, ranging from a low of 84.07 days on December 31, 2020, to a high of 207.87 days on September 30, 2022. This indicates fluctuations in the company's inventory management efficiency and could suggest challenges in maintaining optimal inventory levels.
On the other hand, the Days of Sales Outstanding (DSO) and Number of Days of Payables data were not provided, making it challenging to assess the company's accounts receivable and accounts payable management efficiency. Without this information, it is difficult to evaluate how quickly the company is collecting payments from customers or how efficiently it is utilizing trade payables to manage cash flow.
Overall, the analysis of Wolverine World Wide Inc's activity ratios, particularly the inventory holding period, highlights the importance of monitoring and managing inventory levels effectively to optimize working capital and operational efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 8.65 | 18.95 | 19.00 | 19.71 | 9.13 | 8.84 | 19.62 | 9.04 | 8.74 | 8.42 | 7.23 | 14.37 | 14.96 | 14.60 | 15.83 |
| Total asset turnover | 1.05 | 1.02 | 1.04 | 1.10 | 1.09 | 1.07 | 1.08 | 1.10 | 1.08 | 0.84 | 0.88 | 0.92 | 0.93 | 0.85 | 0.93 | 0.82 | 0.84 | 0.76 | 0.76 | 0.80 |
Wolverine World Wide Inc's Fixed Asset Turnover ratio has shown some fluctuations over the years. It increased from around 15 in March 2020 to over 19 in December 2022, signifying that the company efficiently generates sales in relation to its investment in fixed assets. However, the ratio dropped significantly in the following periods to around 9, indicating a possible decline in the utilization of fixed assets to generate revenue.
On the other hand, the Total Asset Turnover ratio depicts the company's ability to generate sales from its total assets. The ratio was relatively stable around 0.8 to 0.9 until it increased to over 1 in December 2022 and continued to improve in subsequent periods. This indicates that Wolverine World Wide Inc has been successful in generating more revenue per dollar of total assets, showcasing efficient asset utilization.
In summary, while the Fixed Asset Turnover ratio fluctuated, potentially signaling variability in the efficiency of fixed asset utilization, the Total Asset Turnover ratio displayed an overall improving trend, reflecting the company's enhanced effectiveness in generating sales from its total asset base.