Wolverine World Wide Inc (WWW)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 104,300 | -70,700 | -205,600 | 117,700 | -140,500 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 307,300 | 278,600 | 339,000 | 644,400 | 573,000 |
| Return on total capital | 33.94% | -25.38% | -60.65% | 18.27% | -24.52% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $104,300K ÷ ($—K + $307,300K)
= 33.94%
Wolverine World Wide Inc's return on total capital has shown significant fluctuations over the years based on the provided data.
- In December 31, 2020, the return on total capital was negative at -24.52%, indicating that the company was not generating sufficient returns to cover its total capital employed.
- By December 31, 2021, there was a notable improvement with a positive return of 18.27%, suggesting that the company was able to generate a return exceeding its total capital investment.
- However, in December 31, 2022, there was a sharp decline in the return on total capital to -60.65%, indicating a significant deterioration in the company's ability to generate returns on its capital.
- The negative trend continued into December 31, 2023, with a return of -25.38%, indicating ongoing challenges in effectively utilizing its capital resources.
- The most recent data from December 31, 2024, shows a recovery in the return on total capital to 33.94%, suggesting a notable improvement in the company's capital efficiency and profitability.
Overall, Wolverine World Wide Inc's return on total capital has depicted volatility and inconsistency over the years, reflecting the variability in the company's ability to efficiently generate returns on its total capital employed.
Peer comparison
Dec 31, 2024