Wolverine World Wide Inc (WWW)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -68,200 | -208,400 | 155,700 | -137,100 | 171,000 |
| Interest expense | US$ in thousands | 2,200 | 2,000 | 8,100 | 8,200 | 1,600 |
| Interest coverage | -31.00 | -104.20 | 19.22 | -16.72 | 106.88 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-68,200K ÷ $2,200K
= -31.00
Wolverine World Wide Inc's interest coverage ratio has been fluctuating significantly over the past five years. In 2023, the interest coverage ratio was reported at -31.00, indicating that the company's operating income was insufficient to cover its interest expenses. This represents a considerable deterioration from the previous year, where the ratio was -104.20.
In 2021, the interest coverage ratio improved to 19.22, suggesting that the company's operating income was more than sufficient to cover its interest expenses. However, this positive trend was short-lived as it dropped back into negative territory in 2020 at -16.72.
The most notable performance was observed in 2019, where Wolverine World Wide Inc achieved an interest coverage ratio of 106.88, indicating a strong ability to cover its interest obligations with operating income.
Overall, the inconsistent performance of the interest coverage ratio over the five-year period suggests varying levels of financial stability and ability to service debt obligations. It is important for investors and stakeholders to closely monitor this ratio to assess the company's financial health and its ability to meet interest payments in the future.
Peer comparison
Dec 31, 2023