Wolverine World Wide Inc (WWW)
Cash conversion cycle
| 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 89.07 + — – —
= 89.07
The cash conversion cycle of Wolverine World Wide Inc has fluctuated over the years, indicating variability in the company's efficiency in managing its working capital.
From December 31, 2022 to September 30, 2023, the cash conversion cycle significantly increased from 168.48 days to 139.28 days, suggesting a potential slowdown in the company's ability to convert its investments in raw materials and production processes back into cash.
However, by December 31, 2023, the company managed to reduce the cash conversion cycle to 99.51 days, signaling an improvement in working capital management. This trend continued into the following periods, with the cash conversion cycle remaining relatively stable around the 100-day mark.
Overall, the company seems to have made efforts to optimize its cash conversion cycle by efficiently managing its inventory, accounts receivable, and accounts payable to ensure a healthy cash flow position. Continued monitoring of the cash conversion cycle will be crucial for assessing the company's liquidity and operational efficiency in the future.
Peer comparison
Dec 31, 2024