Wolverine World Wide Inc (WWW)

Wolverine World Wide Inc's liquidity ratios show fluctuations over the past five years. The current ratio, measuring the company's ability to cover short-term liabilities with current assets, has been relatively stable, ranging from 1.14 in 2022 to 2.23 in 2020. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is a positive sign for short-term liquidity.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, fluctuated more significantly. It ranged from 0.34 in 2022 to 1.52 in 2020. A quick ratio above 1 suggests that the company can meet its short-term obligations without relying on selling inventory, which is generally preferable.

The cash ratio, the most conservative measure of liquidity that focuses solely on cash and cash equivalents to cover current liabilities, also had varying levels. It ranged from 0.12 in 2022 to 0.86 in 2020. A cash ratio above 1 indicates that the company can cover all current liabilities with its cash reserves alone, which is a strong indicator of liquidity.

Overall, Wolverine World Wide Inc's liquidity ratios suggest that the company has generally maintained a sufficient level of liquidity to cover its short-term obligations over the past five years, despite some fluctuations in the quick ratio and cash ratio. Monitoring these ratios will be crucial to ensure the company's ability to meet its financial commitments in the future.

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Additional liquidity measure

The cash conversion cycle of Wolverine World Wide Inc has fluctuated over the past five years. In 2023, the company's cash conversion cycle decreased to 82.20 days from 139.80 days in 2022, indicating an improvement in managing its working capital. This reduction suggests that Wolverine World Wide Inc is taking fewer days to convert its inventory into sales and then into cash.

Comparing to 2021, where the cash conversion cycle was 86.10 days, the company displayed slightly better efficiency in managing its working capital in 2023. However, it is noteworthy that the cash conversion cycle was lower in 2022 at 74.77 days, indicating that the company was more efficient in converting its working capital into cash that year.

In 2019, Wolverine World Wide Inc had a higher cash conversion cycle of 92.67 days compared to 2023, indicating that the company has improved its working capital management over the five-year period.

Overall, Wolverine World Wide Inc has shown fluctuations in its cash conversion cycle over the past five years, with improvements in 2023 compared to the previous years, except for 2022 where the company achieved a more efficient cash conversion cycle.