Wolverine World Wide Inc (WWW)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -134,600 | -252,100 | 81,900 | -182,400 | 145,500 |
| Revenue | US$ in thousands | 2,242,900 | 2,684,800 | 2,414,900 | 1,791,100 | 2,273,700 |
| Pretax margin | -6.00% | -9.39% | 3.39% | -10.18% | 6.40% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-134,600K ÷ $2,242,900K
= -6.00%
Wolverine World Wide Inc's pretax margin has fluctuated significantly over the past five years. The company experienced negative pretax margins in 2023 and 2022, indicating that its expenses were high relative to its revenue before accounting for taxes. This suggests that the company may have faced challenges in controlling costs or generating sufficient revenue during those years.
In 2021, the pretax margin improved to 3.39%, indicating that the company was able to increase its profitability before taxes. However, this improvement was followed by a significant decline in 2020 when the pretax margin was negative at -10.18%. This sharp decrease could be a result of various factors such as economic downturn, unfavorable business conditions, or strategic missteps.
Prior to 2020, Wolverine World Wide Inc had a positive pretax margin in 2019 at 6.40%, indicating that the company was able to effectively manage its expenses and generate profits before taxes that year.
Overall, the fluctuating pretax margins of Wolverine World Wide Inc suggest that the company has faced challenges in maintaining consistent profitability over the past five years. Further analysis of the company's financial strategies and operational efficiencies may be necessary to understand the factors contributing to these fluctuations in pretax margin.
Peer comparison
Dec 31, 2023