Wolverine World Wide Inc (WWW)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 152,100 | 179,000 | 131,500 | 161,700 | 347,400 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 533,100 | 869,400 | 1,110,300 | 759,600 | 406,000 |
| Cash ratio | 0.29 | 0.21 | 0.12 | 0.21 | 0.86 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($152,100K
+ $—K)
÷ $533,100K
= 0.29
The cash ratio of Wolverine World Wide Inc has exhibited fluctuations over the past five years. It decreased from 0.86 as of December 31, 2020, to 0.21 as of December 31, 2021, indicating a significant reduction in its ability to cover its short-term obligations solely with cash and cash equivalents. The ratio further declined to 0.12 by December 31, 2022, suggesting a continued strain on the company's liquidity position during that period.
However, there was a slight improvement in the cash ratio to 0.21 by December 31, 2023, indicating a partial recovery in the company's ability to meet short-term obligations with available cash resources. Subsequently, by December 31, 2024, the cash ratio further improved to 0.29, signaling a stronger liquidity position compared to the previous year.
Overall, the trend in the cash ratio of Wolverine World Wide Inc reflects varying levels of liquidity risk and highlights the importance of closely monitoring and managing the company's cash and cash equivalent positions to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024