Wolverine World Wide Inc (WWW)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 179,000 | 131,500 | 161,700 | 347,400 | 180,600 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 230,800 | 241,700 | 319,600 | 268,300 | 331,200 |
| Total current liabilities | US$ in thousands | 869,400 | 1,110,300 | 759,600 | 406,000 | 787,400 |
| Quick ratio | 0.47 | 0.34 | 0.63 | 1.52 | 0.65 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($179,000K
+ $—K
+ $230,800K)
÷ $869,400K
= 0.47
The quick ratio of Wolverine World Wide Inc has fluctuated over the past five years. In 2023, the quick ratio improved to 0.47 from 0.34 in 2022, indicating a higher ability to meet short-term obligations using more liquid assets. However, compared to 2021 and 2022, the quick ratio remains relatively low. In 2021, the quick ratio was 0.63, which was a decrease from the strong position in 2020 when it stood at 1.52, indicating a significant decline in short-term liquidity. The quick ratio then slightly recovered in 2019 to 0.65.
The trend suggests that Wolverine World Wide Inc may have experienced challenges in managing its short-term obligations in recent years, as reflected by the decreasing quick ratios. It is essential for the company to continue monitoring and improving its liquidity position to ensure it can meet its current liabilities effectively.
Peer comparison
Dec 31, 2023