Wolverine World Wide Inc (WWW)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 101,000 | -68,200 | 133,100 | 155,700 | 87,200 |
| Revenue | US$ in thousands | 1,755,000 | 2,242,900 | 2,684,800 | 2,414,900 | 1,791,100 |
| Operating profit margin | 5.75% | -3.04% | 4.96% | 6.45% | 4.87% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $101,000K ÷ $1,755,000K
= 5.75%
Wolverine World Wide Inc's operating profit margin has shown varying trends over the past five years. In December 2020, the operating profit margin stood at 4.87%, indicating that for every dollar of sales, the company generated approximately 4.87 cents in operating profit.
By December 2021, the operating profit margin improved to 6.45%, reflecting better operational efficiency and potentially higher sales prices relative to production costs. However, in December 2022, the operating profit margin slightly decreased to 4.96%, although it remained relatively stable compared to the previous year.
The company faced a challenge in December 2023, as the operating profit margin turned negative, reaching -3.04%. This indicates that the company's operating expenses exceeded its gross profit, resulting in a loss from its core operations during that period.
Fortunately, by December 2024, Wolverine World Wide Inc was able to improve its operating performance, with the operating profit margin rebounding to 5.75%. This recovery suggests that the company may have implemented cost-saving measures or other strategic initiatives to better align its expenses with its revenue generation.
Overall, Wolverine World Wide Inc's operating profit margin has experienced fluctuations, with both positive and negative trends observed throughout the five-year period. It is essential for the company to focus on sustaining or further improving its operating profit margin to ensure long-term profitability and financial health.
Peer comparison
Dec 31, 2024