Wolverine World Wide Inc (WWW)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -68,200 | -208,400 | 155,700 | -137,100 | 171,000 |
| Total assets | US$ in thousands | 2,062,800 | 2,492,700 | 2,586,400 | 2,137,400 | 2,480,000 |
| Operating ROA | -3.31% | -8.36% | 6.02% | -6.41% | 6.90% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-68,200K ÷ $2,062,800K
= -3.31%
The operating return on assets (ROA) of Wolverine World Wide Inc has exhibited fluctuating trends over the past five years. In 2023, the company's operating ROA was -3.31%, reflecting a decrease from the previous year's figure of -8.36%. This negative operating ROA indicates that the company's operating income generated was insufficient to cover its assets, potentially highlighting operational inefficiencies.
In contrast, in 2021, Wolverine World Wide Inc's operating ROA stood at 6.02%, exhibiting a significant improvement from the negative ROA values in 2020 and 2019. This positive operating ROA suggests that the company was able to effectively utilize its assets to generate operating income during that period.
Overall, the fluctuating nature of Wolverine World Wide Inc's operating ROA indicates varying levels of efficiency in utilizing its assets to generate operating income. Further analysis and exploration into the company's operational strategies and performance drivers may be necessary to understand the factors contributing to these fluctuations in operating ROA.
Peer comparison
Dec 31, 2023