Wolverine World Wide Inc (WWW)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -39,600 | -188,300 | 68,600 | -136,900 | 128,500 |
| Total stockholders’ equity | US$ in thousands | 278,600 | 320,600 | 629,600 | 561,400 | 766,700 |
| ROE | -14.21% | -58.73% | 10.90% | -24.39% | 16.76% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-39,600K ÷ $278,600K
= -14.21%
Wolverine World Wide Inc's return on equity (ROE) has exhibited significant fluctuations over the past five years. In 2023, the company reported a negative ROE of -14.21%, reflecting a decline from the previous year's -58.73%. This negative trend suggests that the company's net income generated from shareholders' equity decreased, indicating potential operational inefficiencies or financial challenges.
The positive ROE of 10.90% in 2021 followed by a negative ROE of -24.39% in 2020 implies a mixed performance in terms of utilizing equity to generate profits during these periods. The notable drop in 2020 suggests a decrease in profitability relative to shareholders' investments, while the recovery in 2021 indicates an improved ability to generate returns on equity.
In 2019, Wolverine World Wide Inc achieved a ROE of 16.76%, indicating a strong performance in utilizing equity to generate profits. However, without further context or trend analysis, it is difficult to pinpoint the exact factors driving these fluctuations in ROE.
Overall, Wolverine World Wide Inc's ROE has been volatile, reflecting varying levels of profitability relative to shareholders' equity over the past five years. Further analysis of the company's financial performance, operational efficiency, and strategic decisions is necessary to gain a comprehensive understanding of the factors influencing its ROE.
Peer comparison
Dec 31, 2023