Wolverine World Wide Inc (WWW)

Liquidity ratios

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
Current ratio 1.29 1.23 1.19 1.13 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
Quick ratio 0.29 0.23 0.22 0.23 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
Cash ratio 0.29 0.23 0.22 0.23 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

The current ratio of Wolverine World Wide Inc has shown some fluctuations over the years, ranging from a low of 1.12 in March 2020 to a peak of 2.23 in December 2020. The ratio indicates the company's ability to cover its short-term liabilities with its short-term assets. Generally, a current ratio above 1 is considered healthy, as it suggests the company has enough current assets to cover its current liabilities.

The quick ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity. Wolverine World Wide Inc's quick ratio has also fluctuated over time, with values ranging from 0.10 to 0.86. A quick ratio above 1 is preferable, as it indicates the company can meet its short-term obligations without relying on selling inventory.

The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, shows a similar pattern to the quick ratio, ranging from 0.10 to 0.86. A higher cash ratio suggests the company has a better ability to cover its short-term liabilities with the most liquid assets.

Overall, Wolverine World Wide Inc's liquidity ratios show some variability, with periods of improvement followed by declines. It is important for the company to maintain a balance between having enough liquidity to cover its short-term obligations and investing in opportunities for growth.

Additional liquidity measure

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
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

The cash conversion cycle of Wolverine World Wide Inc, a measure of how quickly a company can convert its inventory into cash, provides valuable insights into the company's operating efficiency.

Looking at the trend over time, we can see that the cash conversion cycle has fluctuated significantly. It increased from 113.43 days as of March 31, 2020, to a peak of 207.87 days as of September 30, 2022, before gradually decreasing to 89.07 days as of December 31, 2024.

It is worth noting that a longer cash conversion cycle may indicate inefficiencies in managing inventory, accounts receivable, and accounts payable, whereas a shorter cycle suggests improved liquidity and potentially better financial performance.

However, it is essential to consider industry benchmarks and the company's specific business model when interpreting the cash conversion cycle. Overall, monitoring changes in this metric can provide valuable insights into Wolverine World Wide Inc's operational and financial health.