Wolverine World Wide Inc (WWW)
Activity ratios
Short-term
Turnover ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.47 | 4.55 | 4.17 | 3.68 | 3.11 | 2.03 | 2.72 | 3.63 | 6.05 | 5.63 | 6.61 | 6.15 | 7.92 | 5.76 | 4.98 | 5.15 | 6.15 | 4.80 | 4.91 | 5.31 |
| Receivables turnover | 9.44 | 8.41 | 10.17 | — | 10.76 | 6.04 | 6.21 | 6.81 | 7.56 | 6.32 | 5.77 | 5.75 | 6.67 | 5.67 | 7.45 | 6.77 | 6.87 | 6.28 | 6.13 | 5.94 |
| Payables turnover | 11.74 | 13.02 | 10.71 | 11.78 | 8.51 | 5.64 | 5.46 | 5.98 | 9.96 | 8.75 | 7.85 | 7.07 | 10.40 | 9.79 | 12.43 | 15.17 | 10.59 | 12.89 | 9.39 | 17.64 |
| Working capital turnover | 14.00 | 9.32 | 12.29 | 15.51 | 16.77 | 12.06 | 13.13 | 22.85 | 16.76 | 15.23 | 3.81 | 3.39 | 3.59 | 3.90 | 4.45 | 16.58 | 12.65 | 19.56 | 12.09 | 7.87 |
Wolverine World Wide Inc's activity ratios provide insights into how efficiently the company manages its inventory, receivables, payables, and working capital.
1. Inventory turnover:
Wolverine World Wide Inc's inventory turnover has shown a generally increasing trend over the period, which indicates that the company is selling its inventory more quickly. The latest figure of 6.47 suggests that the company is efficiently managing its inventory levels and turning over its stock faster compared to previous periods.
2. Receivables turnover:
The receivables turnover ratio reflects how well the company is collecting cash from its credit sales. Wolverine World Wide Inc's receivables turnover ratios have been fluctuating over time. The latest value of 9.44 indicates that the company collects its receivables approximately 9.44 times a year, showing an improvement in collecting sales generated on credit.
3. Payables turnover:
The payables turnover ratio measures how efficiently the company pays its suppliers. Wolverine World Wide Inc has varied payables turnover ratios over the periods, with the latest value of 11.74 suggesting an increase in how quickly the company pays its suppliers.
4. Working capital turnover:
The working capital turnover ratio indicates how effectively the company utilizes its working capital to generate sales. Wolverine World Wide Inc's working capital turnover has shown fluctuations, with the latest value of 14.00 suggesting that the company generated $14 in sales for every dollar of working capital invested. This indicates efficient utilization of working capital.
Overall, based on the activity ratios analysis, Wolverine World Wide Inc appears to be managing its assets and liabilities efficiently, improving inventory turnover, receivables collection, payables management, and working capital utilization over the analyzed periods.
Average number of days
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 56.37 | 80.15 | 87.59 | 99.11 | 117.36 | 179.44 | 134.28 | 100.46 | 60.33 | 64.83 | 55.25 | 59.35 | 46.11 | 63.32 | 73.26 | 70.88 | 59.37 | 75.99 | 74.28 | 68.72 |
| Days of sales outstanding (DSO) | days | 38.65 | 43.40 | 35.90 | — | 33.93 | 60.39 | 58.80 | 53.57 | 48.31 | 57.73 | 63.29 | 63.46 | 54.71 | 64.41 | 48.96 | 53.93 | 53.17 | 58.14 | 59.53 | 61.49 |
| Number of days of payables | days | 31.08 | 28.03 | 34.09 | 30.98 | 42.87 | 64.76 | 66.79 | 61.07 | 36.66 | 41.72 | 46.51 | 51.66 | 35.09 | 37.29 | 29.36 | 24.06 | 34.46 | 28.31 | 38.87 | 20.69 |
The Days of Inventory on Hand (DOH) measure for Wolverine World Wide Inc has shown some fluctuations over the past several quarters, ranging from 46.11 days to 179.44 days. The trend indicates that the company has been managing its inventory levels more efficiently in recent quarters compared to previous periods, with a significant decrease in the DOH ratio towards the end of 2023 compared to earlier in the year.
The Days of Sales Outstanding (DSO) metric has also displayed variability, ranging from a low of 33.93 days to a high of 64.41 days. The trend suggests that Wolverine World Wide Inc has been able to collect its accounts receivable more quickly in certain quarters, indicating a potentially improved credit control and collection process.
The Number of Days of Payables ratio has fluctuated as well, with a range from 20.69 days to 66.79 days. Generally, a lower number of days of payables indicates that the company is paying its suppliers more quickly. In this case, the trend has been somewhat erratic, suggesting some variability in the company's payment practices over the quarters.
Overall, Wolverine World Wide Inc's activity ratios indicate some improvements in managing inventory and collecting receivables efficiently. However, the variability observed in these ratios suggests that the company may still have opportunities to further optimize its working capital management processes for greater stability and efficiency.
Long-term
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 22.63 | 18.08 | 18.28 | 18.41 | 19.09 | 21.11 | 20.45 | 19.67 | 18.72 | 18.01 | 17.85 | 15.41 | 14.37 | 14.90 | 14.58 | 15.83 | 16.13 | 15.69 | 16.13 | 16.76 |
| Total asset turnover | 1.06 | 1.03 | 1.04 | 1.07 | 1.04 | 0.84 | 0.88 | 0.92 | 0.93 | 0.85 | 0.93 | 0.82 | 0.84 | 0.75 | 0.76 | 0.79 | 0.92 | 0.91 | 0.91 | 0.95 |
Wolverine World Wide Inc's fixed asset turnover ratio has shown fluctuating trends over the past five years, ranging from a low of 14.37 to a high of 22.63. This ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover generally indicates better efficiency in asset utilization.
On the other hand, the total asset turnover ratio has also varied over the same period, with values ranging from 0.75 to 1.07. This ratio reflects the efficiency of the company in generating sales from its total assets, including both fixed and current assets. A higher total asset turnover is usually preferred as it suggests that the company is generating more revenue per dollar of assets.
Overall, while Wolverine World Wide Inc's fixed asset turnover shows some volatility, the total asset turnover has been relatively stable in the past five years. This indicates that the company has been able to maintain a consistent level of efficiency in utilizing its total assets to generate revenue. However, further analysis and comparison with industry benchmarks may be necessary to gain a more complete understanding of the company's performance in this area.