Wolverine World Wide Inc (WWW)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.29 | 0.29 | 0.28 | 0.33 | 0.17 |
| Debt-to-capital ratio | 0.68 | 0.69 | 0.54 | 0.56 | 0.36 |
| Debt-to-equity ratio | 2.17 | 2.26 | 1.16 | 1.27 | 0.56 |
| Financial leverage ratio | 7.40 | 7.78 | 4.11 | 3.81 | 3.23 |
The solvency ratios of Wolverine World Wide Inc provide insights into the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing.
- Debt-to-assets ratio remained relatively stable around 0.28-0.33 from 2020 to 2023, indicating that on average, around 28% to 33% of the company's total assets are financed by debt.
- Debt-to-capital ratio increased from 0.36 in 2019 to 0.68 in 2023, implying that debt accounts for approximately 68% of the company's total capital by the most recent year. This suggests a growing reliance on debt financing.
- Debt-to-equity ratio shows an upward trend from 0.56 in 2019 to 2.17 in 2023, indicating that the company's leverage has significantly increased over the years. In 2023, the company had more than 2 times more debt than equity, signifying a higher financial risk.
- Financial leverage ratio has also shown an upward trend from 3.23 in 2019 to 7.40 in 2023. This ratio indicates the company's degree of financial leverage, with higher values suggesting higher financial risk and reliance on debt for operations.
Overall, the trend across the solvency ratios of Wolverine World Wide Inc suggests a significant increase in leverage and reliance on debt financing over the years, potentially increasing the company's financial risk and highlighting the importance of closely monitoring its debt management strategies.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -31.00 | -104.20 | 19.22 | -16.72 | 106.88 |
The interest coverage ratio for Wolverine World Wide Inc has been fluctuating significantly over the past five years.
In 2023, the interest coverage ratio is -31.00, which indicates that the company's operating income is insufficient to cover its interest expenses, raising concerns about the company's ability to meet its financial obligations related to debt.
The ratio of -104.20 in 2022 also shows a severe lack of earnings to cover interest payments, suggesting a high level of financial risk.
On the other hand, the interest coverage ratio of 19.22 in 2021 reflects a strong ability to meet interest payments from operating income.
In contrast, the negative interest coverage ratios in 2020 and 2019 suggest significant financial distress, as the company's operating income was not enough to cover its interest expenses during those years.
Overall, Wolverine World Wide Inc's interest coverage has been unstable, with some years showing strong coverage and others indicating financial vulnerability. Investors and creditors should closely monitor the company's financial performance to assess its ability to service debt obligations effectively.