Wolverine World Wide Inc (WWW)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 47,900 | -39,600 | -189,100 | 68,600 | -138,600 |
| Total stockholders’ equity | US$ in thousands | 307,300 | 278,600 | 339,000 | 644,400 | 573,000 |
| ROE | 15.59% | -14.21% | -55.78% | 10.65% | -24.19% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $47,900K ÷ $307,300K
= 15.59%
The return on equity (ROE) of Wolverine World Wide Inc has shown significant fluctuations over the past five years. The ROE was negative in 2020 at -24.19%, indicating that the company had a net loss relative to its equity. However, in 2021, the ROE improved to 10.65%, suggesting a return to profitability and a more efficient utilization of shareholders' equity.
In 2022, the ROE sharply declined to -55.78%, indicating a substantial decrease in profitability and an inefficient use of equity. The negative ROE in this year signifies that the company experienced a significant loss relative to its equity base.
In 2023, the ROE remained negative at -14.21%, further reflecting a continued struggle in generating profits in relation to shareholders' equity. However, in 2024, there was a notable recovery as the ROE improved to 15.59%, signaling a return to profitability and enhanced efficiency in utilizing equity.
Overall, the fluctuating ROE of Wolverine World Wide Inc over the past five years highlights the company's varying performance in generating profits relative to shareholders' equity. It would be crucial for the company to focus on sustaining profitability and efficiently using equity to create value for shareholders in the future.
Peer comparison
Dec 31, 2024