Wolverine World Wide Inc (WWW)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Operating income (ttm) US$ in thousands 83,800 -142,900 -150,800 -110,500 -68,200 92,700 123,100 154,900 129,200 146,500 131,300 117,200 155,700 -39,700 -39,600 -95,900 -137,100 61,800 87,500 135,500
Total assets US$ in thousands 1,668,800 1,758,700 1,796,300 1,853,000 2,062,800 2,231,300 2,357,300 2,416,700 2,492,700 3,170,600 2,949,000 2,746,000 2,586,400 2,681,400 2,303,600 2,267,300 2,137,400 2,501,100 2,589,400 2,753,700
Operating ROA 5.02% -8.13% -8.40% -5.96% -3.31% 4.15% 5.22% 6.41% 5.18% 4.62% 4.45% 4.27% 6.02% -1.48% -1.72% -4.23% -6.41% 2.47% 3.38% 4.92%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $83,800K ÷ $1,668,800K
= 5.02%

The operating return on assets (Operating ROA) of Wolverine World Wide Inc has shown fluctuating trends over the analyzed periods. The company achieved a positive operating ROA of 4.92% as of March 31, 2020, indicating that it generated a profit through its operations in relation to its total assets. However, the operating ROA declined in subsequent quarters, reaching a low of -6.41% by December 31, 2020, indicating operational inefficiencies leading to a loss.

The trend of negative operating ROA continued into the first half of 2021, with the metric improving slightly but remaining negative. However, starting from December 31, 2021, Wolverine World Wide Inc experienced a significant turnaround, with its operating ROA turning positive at 6.02% and continuing to improve steadily over the following quarters, reaching 5.02% by December 31, 2024.

The positive swing in operating ROA post-2021 suggests that the company effectively utilized its assets to generate operating profits, indicating improved operational efficiency and profitability. This positive trend demonstrates management's ability to optimize assets and improve the company's operational performance. Further analysis may be required to understand the specific strategies and initiatives that contributed to this turnaround in operating ROA.


Peer comparison

Dec 31, 2024

Company name
Symbol
Operating ROA
Wolverine World Wide Inc
WWW
5.02%
Caleres Inc
CAL
7.92%
Skechers USA Inc
SKX
10.69%
Steven Madden Ltd
SHOO
15.93%