Wolverine World Wide Inc (WWW)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,668,800 | 2,062,800 | 2,492,700 | 2,586,400 | 2,137,400 |
| Total stockholders’ equity | US$ in thousands | 307,300 | 278,600 | 339,000 | 644,400 | 573,000 |
| Financial leverage ratio | 5.43 | 7.40 | 7.35 | 4.01 | 3.73 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,668,800K ÷ $307,300K
= 5.43
The financial leverage ratio of Wolverine World Wide Inc has shown fluctuation over the years. It increased from 3.73 in 2020 to 4.01 in 2021, which indicates a slight increase in financial leverage. However, there was a significant spike in 2022 and 2023, with the ratio reaching 7.35 and 7.40 respectively, suggesting a substantial increase in debt compared to equity. This level of financial leverage may indicate higher financial risk for the company.
In 2024, the ratio decreased to 5.43, which could imply a reduction in debt relative to equity or an increase in equity compared to debt. While it is still higher than the ratios in 2020 and 2021, this reduction may signify a slight improvement in the company's financial leverage position.
Overall, Wolverine World Wide Inc's financial leverage ratio has shown fluctuations, with a notable increase in 2022 and 2023 followed by a decrease in 2024. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's ability to meet its financial obligations and manage its debt levels effectively.
Peer comparison
Dec 31, 2024