Wolverine World Wide Inc (WWW)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 5.43 | 7.40 | 7.35 | 4.01 | 3.73 |
Wolverine World Wide Inc has displayed consistently strong solvency ratios over the years, as indicated by its debt-to-assets, debt-to-capital, and debt-to-equity ratios all being at 0.00 from 2020 to 2024. This implies that the company has zero or negligible debt in relation to its assets, capital, and equity, reflecting a conservative financial structure and a low level of financial risk.
However, the financial leverage ratio experienced some fluctuations during the period, starting at 3.73 in 2020 and peaking at 7.40 in 2023, before declining to 5.43 in 2024. This indicates that the company's financial leverage, which measures the proportion of assets supported by debt financing, increased significantly in 2022 and 2023 before decreasing in 2024.
Overall, Wolverine World Wide Inc's strong solvency ratios suggest a healthy financial position with little reliance on debt for financing its operations. The fluctuations in the financial leverage ratio may warrant further investigation into the company's capital structure and financing decisions in those particular years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.44 | -1.11 | -4.35 | 3.15 | -3.22 |
The interest coverage ratio for Wolverine World Wide Inc has displayed fluctuations over the past five years.
In December 2020, the interest coverage ratio was reported at a concerning level of -3.22, indicating that the company's operating income was insufficient to cover its interest expenses, which could be a sign of financial distress.
However, by December 2021, there was a notable improvement in the interest coverage ratio, reaching 3.15. This improvement suggests that Wolverine World Wide Inc's operating income became more capable of covering its interest obligations.
Unfortunately, in December 2022, the interest coverage ratio deteriorated once again, dropping to -4.35. This significant decrease indicates that the company's ability to meet its interest payments was severely strained during that period.
The trend continued in December 2023 with an interest coverage ratio of -1.11, raising further concerns about the company's financial stability and its ability to service its debt.
Nonetheless, there was some recovery by December 2024, as the interest coverage ratio improved to 2.44. While an improvement from the previous year, the ratio still falls below the desirable levels, which suggests that Wolverine World Wide Inc may still have some challenges in meeting its interest obligations based on its operating income.
Overall, the fluctuating trend in the interest coverage ratio for Wolverine World Wide Inc indicates varying levels of financial health and the company's ability to manage its debt obligations effectively. It is essential for investors and stakeholders to monitor these ratios closely to assess the company's financial performance and risk profile.