Wolverine World Wide Inc (WWW)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 104,300 | -70,700 | -205,600 | 117,700 | -140,500 |
| Interest expense | US$ in thousands | 42,700 | 63,500 | 47,300 | 37,400 | 43,600 |
| Interest coverage | 2.44 | -1.11 | -4.35 | 3.15 | -3.22 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $104,300K ÷ $42,700K
= 2.44
Wolverine World Wide Inc's interest coverage ratio fluctuated over the past five years. The company faced challenges in December 2020 and December 2022, with interest coverage ratios of -3.22 and -4.35, respectively, indicating that the company's operating income was insufficient to cover its interest expenses during those periods. However, there was an improvement in December 2021 and December 2024, with interest coverage ratios of 3.15 and 2.44, respectively. This suggests that the company's ability to meet its interest obligations improved during those years. December 31, 2023, showed a slightly better but still concerning interest coverage ratio of -1.11. Overall, Wolverine World Wide Inc needs to closely monitor and manage its interest coverage ratio to ensure financial stability and meeting its debt obligations in the future.
Peer comparison
Dec 31, 2024