Wolverine World Wide Inc (WWW)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.90% | 39.87% | 42.65% | 41.07% | 40.63% |
| Operating profit margin | -3.04% | -7.76% | 6.45% | -7.65% | 7.52% |
| Pretax margin | -6.00% | -9.39% | 3.39% | -10.18% | 6.40% |
| Net profit margin | -1.77% | -7.01% | 2.84% | -7.64% | 5.65% |
Wolverine World Wide Inc's profitability ratios have fluctuated over the past five years. The company's gross profit margin has shown a general downward trend, decreasing from 42.65% in 2021 to 38.90% in 2023. This indicates a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
The operating profit margin has been inconsistent, with negative margins in 2020 and 2022. The company experienced significant improvements in 2021 and 2019, with margins of 6.45% and 7.52% respectively. However, the operating profit margin declined to -3.04% in 2023, potentially indicating challenges in managing operating expenses.
The pretax margin also fluctuated over the period, ranging from -10.18% in 2020 to 3.39% in 2021. In 2023, the company experienced a decrease in the pretax margin to -6.00%, indicating that the company's profitability before taxes has worsened.
Similarly, the net profit margin has varied over the years, with negative margins in 2020 and 2022. The company managed to achieve a net profit margin of 2.84% in 2021, but this declined to -1.77% in 2023. This indicates that the company's profitability after all expenses, including taxes, has been inconsistent.
Overall, Wolverine World Wide Inc's profitability ratios suggest that the company has faced challenges in maintaining consistent profitability, with varying margins across different years. It may be important for the company to focus on cost management and operational efficiency to improve its profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -3.31% | -8.36% | 6.02% | -6.41% | 6.90% |
| Return on assets (ROA) | -1.92% | -7.55% | 2.65% | -6.40% | 5.18% |
| Return on total capital | -7.71% | -19.97% | 11.44% | -10.76% | 14.34% |
| Return on equity (ROE) | -14.21% | -58.73% | 10.90% | -24.39% | 16.76% |
Wolverine World Wide Inc's profitability ratios show a mixed performance over the past five years. The Operating Return on Assets (Operating ROA) has been volatile, ranging from a low of -8.36% in 2022 to a high of 6.90% in 2019. However, in 2023, it decreased to -3.31%. This suggests that the company's ability to generate profit from its assets has been inconsistent.
The Return on Assets (ROA) is also negative in the recent year, standing at -1.92%. This indicates that the company's profitability in relation to its total assets is not favorable. Similarly, the Return on Total Capital has been negative over the past five years, with a sharp decline in 2022 and 2023, reaching -7.71% in 2023, indicating that the company is not effectively utilizing its total capital to generate returns.
The Return on Equity (ROE) shows a significant deterioration in 2022 and 2023, with the ratio being at its lowest at -58.73% in 2022 and -14.21% in 2023. This suggests that the company's profitability in relation to the shareholders' equity has weakened significantly in the past two years.
Overall, Wolverine World Wide Inc's profitability ratios indicate a lackluster performance in recent years, marked by negative returns and decreasing profitability ratios, which may raise concerns about the company's ability to generate returns for its stakeholders.