Wolverine World Wide Inc (WWW)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,062,800 | 2,492,700 | 2,586,400 | 2,137,400 | 2,480,000 |
| Total stockholders’ equity | US$ in thousands | 278,600 | 320,600 | 629,600 | 561,400 | 766,700 |
| Financial leverage ratio | 7.40 | 7.78 | 4.11 | 3.81 | 3.23 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,062,800K ÷ $278,600K
= 7.40
The financial leverage ratio for Wolverine World Wide Inc has shown a fluctuating trend over the past five years. The ratio increased from 3.23 in 2019 to 7.40 in 2023, indicating a significant rise in financial leverage. This upward trend suggests that the company has been increasingly relying on debt to finance its operations and growth.
In 2020, there was a slight decrease in the ratio to 3.81 before increasing again in 2021 to 4.11. The highest financial leverage ratio was recorded in 2022 at 7.78, but it slightly declined in 2023 to 7.40. These fluctuations may indicate varying levels of debt in the company's capital structure or changes in the utilization of debt over the years.
Overall, the increasing trend in the financial leverage ratio of Wolverine World Wide Inc implies a higher level of financial risk associated with the company due to its reliance on debt financing. Investors and stakeholders should closely monitor this ratio to assess the company's ability to manage its debt obligations and maintain financial stability in the long run.
Peer comparison
Dec 31, 2023