Wolverine World Wide Inc (WWW)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 605,800 | 723,000 | 731,800 | 712,500 | 425,900 |
| Total assets | US$ in thousands | 2,062,800 | 2,492,700 | 2,586,400 | 2,137,400 | 2,480,000 |
| Debt-to-assets ratio | 0.29 | 0.29 | 0.28 | 0.33 | 0.17 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $605,800K ÷ $2,062,800K
= 0.29
The debt-to-assets ratio for Wolverine World Wide Inc has remained relatively stable over the past five years, ranging from 0.17 to 0.33. In 2023, the ratio stands at 0.29, consistent with the previous year. This ratio indicates that approximately 29% of the company's assets are financed through debt, while the remaining 71% are funded by equity.
A lower debt-to-assets ratio signifies a lower level of financial risk, as the company relies less on debt to finance its operations and investments. On the other hand, a higher ratio could indicate a higher level of leverage and financial risk, as a significant portion of assets are funded by debt.
Overall, Wolverine World Wide Inc's debt-to-assets ratio suggests a moderate level of debt financing relative to its asset base, which may provide the company with financial flexibility and stability. However, it is essential to monitor any significant changes in this ratio over time to assess the company's evolving financial risk profile.
Peer comparison
Dec 31, 2023