Wolverine World Wide Inc (WWW)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -68,200 | -208,400 | 155,700 | -137,100 | 171,000 |
| Long-term debt | US$ in thousands | 605,800 | 723,000 | 731,800 | 712,500 | 425,900 |
| Total stockholders’ equity | US$ in thousands | 278,600 | 320,600 | 629,600 | 561,400 | 766,700 |
| Return on total capital | -7.71% | -19.97% | 11.44% | -10.76% | 14.34% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-68,200K ÷ ($605,800K + $278,600K)
= -7.71%
Wolverine World Wide Inc experienced a decreasing trend in its return on total capital over the past five years. In 2023, the return on total capital was negative at -7.71%, marking an improvement from the previous year where it reached -19.97%. However, this return is still lower compared to the positive returns seen in 2021 and 2019, which were 11.44% and 14.34%, respectively. The company struggled to generate sufficient returns on the total capital employed in the business in 2020, as indicated by a negative return of -10.76%. Moving forward, Wolverine World Wide Inc may need to evaluate its capital allocation strategies and operational efficiency to enhance its return on total capital.
Peer comparison
Dec 31, 2023