Wolverine World Wide Inc (WWW)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -68,200 | -336,000 | -304,500 | -182,700 | -208,400 | 237,600 | 221,300 | 117,200 | 155,700 | -39,700 | -39,600 | -95,900 | -137,100 | 61,800 | 87,500 | 135,500 | 171,000 | 230,100 | 230,200 | 242,800 |
| Long-term debt | US$ in thousands | 605,800 | 716,300 | 718,500 | 720,800 | 723,000 | 725,200 | 727,400 | 729,600 | 731,800 | 704,400 | 708,400 | 710,400 | 712,500 | 714,100 | 715,900 | 423,600 | 425,900 | 430,700 | 433,000 | 435,300 |
| Total stockholders’ equity | US$ in thousands | 278,600 | 342,400 | 346,800 | 326,600 | 320,600 | 656,900 | 643,900 | 596,700 | 629,600 | 626,700 | 633,200 | 609,100 | 561,400 | 754,100 | 724,000 | 725,600 | 766,700 | 782,900 | 843,700 | 911,400 |
| Return on total capital | -7.71% | -31.74% | -28.58% | -17.44% | -19.97% | 17.19% | 16.14% | 8.84% | 11.44% | -2.98% | -2.95% | -7.27% | -10.76% | 4.21% | 6.08% | 11.79% | 14.34% | 18.96% | 18.03% | 18.03% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-68,200K ÷ ($605,800K + $278,600K)
= -7.71%
The return on total capital for Wolverine World Wide Inc has been fluctuating over the past few quarters. The trend shows inconsistency with negative returns in some quarters and positive returns in others.
In the most recent quarter, the return on total capital was -7.71%, indicating that the company's profitability relative to its total capital employed was negative. This suggests that the company may not be effectively utilizing its capital to generate returns for its shareholders.
On a positive note, there were quarters in which the return on total capital was positive, such as in September 2022 and December 2019, indicating that the company was able to generate profits relative to the total capital invested during those periods.
Overall, the return on total capital for Wolverine World Wide Inc has shown variability, indicating potential challenges in consistently generating profits relative to the capital employed. Further analysis of the company's operations and financial performance may be necessary to understand the factors driving these fluctuations and to identify areas for improvement.
Peer comparison
Dec 31, 2023