Wolverine World Wide Inc (WWW)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,242,900 | 2,684,800 | 2,414,900 | 1,791,100 | 2,273,700 |
| Total current assets | US$ in thousands | 1,025,100 | 1,265,300 | 903,700 | 904,200 | 967,100 |
| Total current liabilities | US$ in thousands | 869,400 | 1,110,300 | 759,600 | 406,000 | 787,400 |
| Working capital turnover | 14.41 | 17.32 | 16.76 | 3.60 | 12.65 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,242,900K ÷ ($1,025,100K – $869,400K)
= 14.41
Wolverine World Wide Inc's working capital turnover has shown fluctuations over the past five years. The working capital turnover ratio measures how efficiently the company is using its working capital to generate sales revenue.
In 2023, the working capital turnover ratio of 14.41 indicates that for each dollar of working capital invested, the company generated $14.41 of sales revenue. This is a decrease from 2022 when the ratio was 17.32, suggesting a slight decrease in efficiency in utilizing working capital to generate revenue.
Comparing to 2021 and 2019 where the ratios were 16.76 and 12.65 respectively, the 2023 ratio of 14.41 falls within this range. The significant increase in 2020 to 3.60 could be due to various factors impacting the company's operations during that year.
Overall, Wolverine World Wide Inc's working capital turnover has generally been strong, indicating efficient management of working capital to generate sales. However, the slight decrease in 2023 compared to the previous year warrants further examination to understand the factors influencing this change.
Peer comparison
Dec 31, 2023