Wolverine World Wide Inc (WWW)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 1.18 1.29 1.21 1.16 1.14 1.17 1.18 1.11 1.19 1.18 2.08 2.10 2.23 1.86 1.65 1.12 1.23 1.14 1.25 1.48
Quick ratio 0.47 0.51 0.43 0.11 0.34 0.43 0.52 0.54 0.59 0.64 1.37 1.38 1.52 1.20 1.01 0.71 0.65 0.58 0.64 0.77
Cash ratio 0.21 0.19 0.18 0.11 0.12 0.10 0.14 0.15 0.17 0.22 0.66 0.73 0.86 0.61 0.62 0.42 0.23 0.15 0.16 0.14

Wolverine World Wide Inc's liquidity ratios displayed notable fluctuations over the period under review. The current ratio, measuring the company's ability to cover short-term liabilities with current assets, ranged from a low of 1.11 to a high of 2.23. While the current ratio generally remained above 1, indicating the company's ability to meet short-term obligations, there was significant variability in the ratio over time.

The quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, also exhibited variability, with values fluctuating between 0.11 and 1.52. The quick ratio generally remained below 1, suggesting that the company may face challenges in meeting immediate obligations without relying on inventory.

The cash ratio, representing the extent to which current liabilities can be covered by cash and cash equivalents, demonstrated a similar pattern of fluctuation, ranging from 0.10 to 0.86. This indicates that Wolverine World Wide Inc may have had varying levels of liquid assets available to cover its short-term liabilities during the period.

Overall, the analysis of the liquidity ratios suggests that Wolverine World Wide Inc experienced fluctuations in its ability to meet short-term obligations over the period, which may be attributed to changes in its asset composition and cash position. It is important for the company to closely monitor these ratios to ensure a healthy liquidity position and to be prepared for potential cash flow challenges.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 63.94 95.51 89.40 68.13 108.43 175.07 126.28 92.96 71.98 80.85 72.04 71.15 65.73 90.44 92.86 100.75 78.08 105.82 94.95 109.51

The cash conversion cycle of Wolverine World Wide Inc has fluctuated over the past few quarters. The cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, was highest at 175.07 days in September 2022 and lowest at 63.94 days in December 2023. This indicates that the company has at times taken longer to convert its investments into cash, leading to a higher cash conversion cycle.

In general, a shorter cash conversion cycle is preferred as it signifies efficient management of working capital and quick turnover of assets into cash. The company should focus on reducing the cycle by managing inventory levels, improving collection of receivables, and optimizing payment terms with suppliers. It is important for Wolverine World Wide Inc to closely monitor and analyze trends in the cash conversion cycle to ensure effective management of cash flow and liquidity.