Wolverine World Wide Inc (WWW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.53% | 38.90% | 39.87% | 42.65% | 41.07% |
| Operating profit margin | 5.75% | -3.04% | 4.96% | 6.45% | 4.87% |
| Pretax margin | 3.51% | -5.98% | -9.42% | 3.33% | -10.28% |
| Net profit margin | 2.73% | -1.77% | -7.04% | 2.84% | -7.74% |
Wolverine World Wide Inc's gross profit margin has shown a fluctuating trend over the past five years, starting at 41.07% in 2020, increasing to 42.65% in 2021, then decreasing to 39.87% in 2022, further declining to 38.90% in 2023 before experiencing a significant improvement to 44.53% in 2024. This indicates variability in the company's ability to generate profit from its core business operations.
In terms of operating profit margin, the company experienced a similar pattern of fluctuation. It stood at 4.87% in 2020, improved to 6.45% in 2021, dropped to 4.96% in 2022, fell into negative territory at -3.04% in 2023, and then recovered to 5.75% in 2024. The negative operating profit margin in 2023 suggests that the company was unable to cover its operating expenses with its revenues during that year.
Looking at the pretax margin, Wolverine World Wide Inc faced challenges in profitability, with negative margins in 2020, 2022, and 2023. The margins were -10.28% in 2020, -9.42% in 2022, and -5.98% in 2023. However, there was an improvement in 2021 and 2024, with margins of 3.33% and 3.51%, respectively. This indicates fluctuations in the company's ability to generate profit before accounting for taxes.
The net profit margin, reflecting the company's bottom-line profitability, also exhibited variability. It was negative in 2020 and 2022, with margins of -7.74% and -7.04%, respectively. However, there was a positive net profit margin in 2021, 2023, and 2024, with margins of 2.84%, -1.77%, and 2.73%, respectively. This shows that Wolverine World Wide Inc struggled to maintain consistent profitability over the period under review.
In summary, Wolverine World Wide Inc's profitability ratios have shown a mixed performance over the past five years, with fluctuations in gross profit margin, operating profit margin, pretax margin, and net profit margin. The company needs to focus on improving its operational efficiency and cost management to achieve more stable and healthier levels of profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.05% | -3.31% | 5.34% | 6.02% | 4.08% |
| Return on assets (ROA) | 2.87% | -1.92% | -7.59% | 2.65% | -6.48% |
| Return on total capital | 33.94% | -25.38% | -60.65% | 18.27% | -24.52% |
| Return on equity (ROE) | 15.59% | -14.21% | -55.78% | 10.65% | -24.19% |
Wolverine World Wide Inc's profitability ratios demonstrate varying levels of performance over the years.
1. Operating Return on Assets (Operating ROA) increased from 4.08% in 2020 to 6.02% in 2021, showing improved operational efficiency. However, it slightly decreased to 5.34% in 2022 before experiencing a notable decline to -3.31% in 2023. The ratio then rebounded to 6.05% in 2024.
2. Return on Assets (ROA) was negative in 2020 at -6.48%, indicating that the company had challenges generating profits from its assets. The ratio improved to 2.65% in 2021 but turned negative again in 2022 and 2023 at -7.59% and -1.92% respectively. The ROA recovered to a positive 2.87% in 2024.
3. Return on Total Capital fluctuated significantly, with a substantial negative return of -24.52% in 2020, followed by a positive return of 18.27% in 2021. The ratio then dropped to -60.65% in 2022 before improving to -25.38% in 2023 and reaching 33.94% in 2024.
4. Return on Equity (ROE) mirrored the trend of Return on Total Capital, with negative ROE of -24.19% in 2020. ROE turned positive at 10.65% in 2021 but fell back to a negative -55.78% in 2022. It improved to -14.21% in 2023 and further increased to 15.59% in 2024.
Overall, Wolverine World Wide Inc's profitability ratios show fluctuations, with improvements in some measures in recent years, indicating that the company has been working towards enhancing its profitability and financial performance.