Wolverine World Wide Inc (WWW)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 102,700 | -121,200 | -135,300 | -103,100 | -73,600 | -337,100 | -303,700 | -288,800 | -288,700 | 106,300 | 56,900 | 43,600 | 73,200 | -78,000 | -37,000 | -79,700 | -108,700 | 92,000 | 110,300 | 144,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 451,700 | 288,100 | 262,100 | 252,500 | 278,600 | 362,700 | 366,900 | 326,600 | 339,000 | 656,900 | 643,900 | 596,700 | 644,400 | 626,700 | 649,100 | 625,100 | 573,000 | 754,100 | 735,900 | 735,900 |
| Return on total capital | 22.74% | -42.07% | -51.62% | -40.83% | -26.42% | -92.94% | -82.77% | -88.43% | -85.16% | 16.18% | 8.84% | 7.31% | 11.36% | -12.45% | -5.70% | -12.75% | -18.97% | 12.20% | 14.99% | 19.68% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $102,700K ÷ ($—K + $451,700K)
= 22.74%
The return on total capital for Wolverine World Wide Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024.
- The ratio started relatively strong at 19.68% in March 2020, indicating efficient utilization of capital to generate profits.
- However, there was a decline in performance by the end of 2020, with negative returns recorded in December 2020, March 2021, and June 2021.
- The company made improvements in the subsequent quarters, with a positive return recorded in September 2021 and December 2021.
- The return on total capital continued to fluctuate, with negative returns in some quarters and positive returns in others, showcasing a lack of consistent profitability.
- Notably, there was a significant downturn in the last quarter of 2022 and the first three quarters of 2023, with the return on total capital plunging to very low levels.
- However, the performance improved in the following quarters, with a significant increase in the return on total capital to 22.74% in December 2024, indicating a potential rebound in capital efficiency and profitability.
Overall, Wolverine World Wide Inc's return on total capital reflects a mixed performance with periods of both strong profitability and significant downturns. It will be crucial for the company to focus on maintaining consistent profitability and efficient capital utilization to sustain long-term financial health.
Peer comparison
Dec 31, 2024