Wolverine World Wide Inc (WWW)
Debt-to-equity 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-equity ratio | 2.17 | 2.26 | 1.16 | 1.27 | 0.56 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $605,800K ÷ $278,600K
= 2.17
The debt-to-equity ratio for Wolverine World Wide Inc has exhibited fluctuations over the past five years. In 2019, the company had a relatively low debt-to-equity ratio of 0.56, indicating a conservative capital structure with higher reliance on equity financing compared to debt. However, this ratio increased significantly to 1.27 in 2020 and further rose to 1.16 in 2021, suggesting a rise in the company's debt levels relative to equity.
The trend continued in 2022 and 2023, with the debt-to-equity ratio reaching 2.26 and 2.17, respectively. These higher ratios indicate a greater proportion of debt used to finance the company's operations compared to equity. A higher debt-to-equity ratio can indicate increased financial risk and potential vulnerability to economic downturns or rising interest rates.
It is essential for investors and stakeholders to monitor Wolverine World Wide Inc's debt levels and evaluate the company's ability to manage and service its debt obligations effectively, considering the implications of the increasing debt-to-equity ratio on the company's financial health and stability.
Peer comparison
Dec 31, 2023