Wolverine World Wide Inc (WWW)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 47,600 | -68,200 | -83,200 | -73,400 | -39,600 | -309,200 | -279,600 | -179,000 | -188,300 | 157,900 | 128,100 | 48,200 | 77,000 | -79,100 | -65,100 | -111,400 | -136,900 | 32,900 | 59,200 | 101,000 |
| 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 |
| ROA | 2.85% | -3.88% | -4.63% | -3.96% | -1.92% | -13.86% | -11.86% | -7.41% | -7.55% | 4.98% | 4.34% | 1.76% | 2.98% | -2.95% | -2.83% | -4.91% | -6.40% | 1.32% | 2.29% | 3.67% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $47,600K ÷ $1,668,800K
= 2.85%
Wolverine World Wide Inc's return on assets (ROA) shows fluctuating performance over the past few years. The ROA indicates how efficiently the company is generating profits from its assets.
From March 2020 to June 2020, the ROA decreased from 3.67% to 2.29%, indicating a slight decline in asset efficiency. This trend continued, with the ROA decreasing further to 1.32% by September 2020, reflecting a potentially weaker asset utilization by the company.
However, a significant downturn was observed by the end of December 2020, with the ROA plummeting to -6.40%. This negative ROA suggests that the company's asset performance resulted in a net loss during this period.
The negative trend continued through the first half of 2021, with ROA values ranging between -4.91% and -2.83%. This indicates ongoing challenges in effectively utilizing assets to generate profits.
Subsequently, there was a notable turnaround in the company's performance, with ROA values turning positive by December 2021 and reaching 2.98%. This positive ROA suggests that the company managed to improve its asset efficiency and profitability during this period.
However, the positive momentum was short-lived, as the ROA decreased to 1.76% by March 2022, potentially indicating a dip in asset performance.
Improvements were observed in the later part of 2022 and early 2023, with ROA values steadily increasing and peaking at 4.98% in September 2022. This indicates a period of enhanced asset efficiency and profitability for the company.
Unfortunately, a significant decline followed, with ROA dropping to -7.55% by the end of December 2022. This sharp decrease suggests a period of poor asset utilization and potentially negative impacts on profitability.
The negative trend persisted through 2023 and the first half of 2024, with ROA values consistently in the negative range, ranging from -1.92% to -13.86%. This indicates continued challenges in effectively leveraging assets to generate profits.
A slight recovery was observed by the end of 2024, with the ROA improving to 2.85%. This indicates a potential turnaround in asset efficiency and profitability for Wolverine World Wide Inc.
In conclusion, Wolverine World Wide Inc's ROA has shown significant fluctuations over the analyzed period, indicating varying levels of asset efficiency and profitability. It is essential for the company to focus on improving asset utilization to enhance its overall financial performance.
Peer comparison
Dec 31, 2024