Wolverine World Wide Inc (WWW)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -68,200 | -336,000 | -304,500 | -182,700 | -208,400 | 237,600 | 221,300 | 117,200 | 155,700 | -39,700 | -39,600 | -95,900 | -137,100 | 61,800 | 87,500 | 135,500 | 171,000 | 230,100 | 230,200 | 242,800 |
| Interest expense (ttm) | US$ in thousands | 17,500 | 17,400 | 17,300 | 17,300 | 2,000 | 2,100 | 2,200 | 2,300 | 2,500 | 7,900 | 8,200 | 8,300 | 8,000 | 2,400 | 1,900 | 1,600 | 1,600 | 1,800 | 2,000 | 2,200 |
| Interest coverage | -3.90 | -19.31 | -17.60 | -10.56 | -104.20 | 113.14 | 100.59 | 50.96 | 62.28 | -5.03 | -4.83 | -11.55 | -17.14 | 25.75 | 46.05 | 84.69 | 106.88 | 127.83 | 115.10 | 110.36 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-68,200K ÷ $17,500K
= -3.90
The interest coverage ratio for Wolverine World Wide Inc has exhibited significant fluctuations over the periods in question. The company's ability to cover its interest expenses with its earnings, as indicated by the interest coverage ratio, has been inconsistent.
In the most recent quarter, as of December 31, 2023, the interest coverage ratio stood at -3.90, indicating that the company's earnings were not sufficient to cover its interest expenses. This raises concerns about the company's financial health and ability to service its debt obligations.
Looking at historical data, the interest coverage ratio has been highly volatile, with some quarters showing strong coverage ratios, such as 113.14 in September 2022 and 127.83 in December 2019. However, there were also quarters with notably low ratios, including -104.20 in December 2022 and -19.31 in September 2023.
The sharp fluctuations in the interest coverage ratio suggest that Wolverine World Wide Inc has had challenges in consistently generating enough earnings to cover its interest expenses. Investors and creditors should closely monitor this ratio to assess the company's ability to meet its debt obligations in the future.
Peer comparison
Dec 31, 2023