Wolverine World Wide Inc (WWW)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 99.51 | 168.48 | 96.32 | 84.07 | 94.15 |
| Days of sales outstanding (DSO) | days | 37.56 | 32.86 | 48.31 | 54.68 | 53.17 |
| Number of days of payables | days | 54.87 | 61.54 | 58.53 | 63.97 | 54.65 |
| Cash conversion cycle | days | 82.20 | 139.80 | 86.10 | 74.77 | 92.67 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 99.51 + 37.56 – 54.87
= 82.20
The cash conversion cycle (CCC) of Wolverine World Wide Inc has displayed fluctuations over the past five years. The trend reveals that the company's management of its working capital has been somewhat volatile. In 2023, the CCC decreased to 82.20 days from 139.80 days in 2022, indicating an improvement in the efficiency of cash utilization in the business operations.
Comparing the CCC to the previous years, it is noticeable that the CCC was lower in 2023 compared to 2021 and 2019, but higher than 2020. This suggests that Wolverine World Wide Inc was more effective in managing its cash cycle in 2023 compared to 2021 and 2019, while facing relatively more challenges in 2022 and 2020.
Overall, the company has shown some variability in its cash conversion cycle performance over the last five years. Further analysis of the components contributing to the CCC, such as accounts receivable, inventory turnover, and accounts payable turnover, may provide deeper insights into the efficiency of Wolverine World Wide Inc's working capital management.
Peer comparison
Dec 31, 2023