Wolverine World Wide Inc (WWW)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 605,800 | 716,300 | 718,500 | 720,800 | 723,000 | 725,200 | 727,400 | 729,600 | 731,800 | 704,400 | 708,400 | 710,400 | 712,500 | 714,100 | 715,900 | 423,600 | 425,900 | 430,700 | 433,000 | 435,300 |
| Total stockholders’ equity | US$ in thousands | 278,600 | 342,400 | 346,800 | 326,600 | 320,600 | 656,900 | 643,900 | 596,700 | 629,600 | 626,700 | 633,200 | 609,100 | 561,400 | 754,100 | 724,000 | 725,600 | 766,700 | 782,900 | 843,700 | 911,400 |
| Debt-to-equity ratio | 2.17 | 2.09 | 2.07 | 2.21 | 2.26 | 1.10 | 1.13 | 1.22 | 1.16 | 1.12 | 1.12 | 1.17 | 1.27 | 0.95 | 0.99 | 0.58 | 0.56 | 0.55 | 0.51 | 0.48 |
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 shown some fluctuation over the past few quarters. The ratio indicates the proportion of the company's total debt to its total equity. A higher ratio suggests that the company is more reliant on debt financing compared to equity.
From the data provided, we can see that the debt-to-equity ratio has been increasing overall since the end of 2019. It rose from 0.48 at the end of 2019 to 2.17 at the end of 2023. This considerable increase indicates a significant shift towards higher debt levels relative to equity in the company's capital structure.
It is worth noting that the ratio has shown some variability within each year, with fluctuations between quarters. For example, the ratio was highest in March 2020 at 2.21 but decreased to 0.58 by March 2020, and then increased again to 2.26 by the end of 2022.
Overall, the trend of increasing debt-to-equity ratio may raise concerns about the company's financial leverage and ability to meet its debt obligations in the long term. Investors and stakeholders may monitor this ratio closely to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023