Wolverine World Wide Inc (WWW)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 278,600 | 320,600 | 629,600 | 561,400 | 766,700 |
| Debt-to-capital ratio | 0.68 | 0.69 | 0.54 | 0.56 | 0.36 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $605,800K ÷ ($605,800K + $278,600K)
= 0.68
The debt-to-capital ratio of Wolverine World Wide Inc has exhibited fluctuations over the past five years. In 2023, the ratio stands at 0.68, slightly lower than the previous year's ratio of 0.69. This suggests that the company's reliance on debt to finance its operations relative to its total capital has decreased marginally.
Comparing the current ratio to 2021 and 2020, the debt-to-capital ratio had experienced a significant increase from 0.54 to 0.56 before rising further to 0.69 in 2022. These increases indicate a growing proportion of debt in relation to the company's overall capital structure during that period.
However, when viewed in a broader context, the current ratio of 0.68 in 2023 is considerably higher than the ratio in 2019, which was 0.36. This substantial escalation over the past five years signifies a notable shift towards higher debt utilization by Wolverine World Wide Inc in funding its activities relative to its capital base.
Overall, while the company's debt-to-capital ratio has demonstrated volatility in recent years, the general trend indicates an increased reliance on debt financing, potentially indicating a shift in the capital structure strategy of Wolverine World Wide Inc.
Peer comparison
Dec 31, 2023