Wolverine World Wide Inc (WWW)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 1,668,800 | 2,062,800 | 2,492,700 | 2,586,400 | 2,137,400 |
| Operating ROA | 6.05% | -3.31% | 5.34% | 6.02% | 4.08% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $101,000K ÷ $1,668,800K
= 6.05%
The trend analysis of Wolverine World Wide Inc's operating return on assets (operating ROA) reveals fluctuations over the years. The operating ROA improved from 4.08% as of December 31, 2020, to 6.02% by December 31, 2021, indicating an enhancement in the company's ability to generate profits from its assets. However, there was a slight decrease in operating ROA to 5.34% by December 31, 2022.
A significant decline was observed in the operating ROA to -3.31% by December 31, 2023, which could signal operational challenges or inefficiencies affecting the company's asset utilization and profitability. Nevertheless, Wolverine World Wide Inc managed to recover and achieved a notable improvement in its operating ROA to 6.05% by December 31, 2024, possibly indicating successful strategic initiatives or operational improvements.
In conclusion, the fluctuating trend in Wolverine World Wide Inc's operating ROA highlights the company's varying performance in efficiently utilizing its assets to generate operating profits over the analyzed years. It is essential for the company to assess and address the factors contributing to the fluctuations to sustain and enhance its profitability in the future.
Peer comparison
Dec 31, 2024