Wolverine World Wide Inc (WWW)

Solvency ratios

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
Debt-to-assets ratio 0.29 0.32 0.30 0.30 0.29 0.23 0.25 0.27 0.28 0.26 0.31 0.31 0.33 0.29 0.28 0.15 0.17 0.17 0.18 0.19
Debt-to-capital ratio 0.68 0.68 0.67 0.69 0.69 0.52 0.53 0.55 0.54 0.53 0.53 0.54 0.56 0.49 0.50 0.37 0.36 0.35 0.34 0.32
Debt-to-equity ratio 2.17 2.09 2.07 2.21 2.26 1.10 1.13 1.22 1.16 1.12 1.12 1.17 1.27 0.95 0.99 0.58 0.56 0.55 0.51 0.48
Financial leverage ratio 7.40 6.52 6.80 7.40 7.78 4.83 4.58 4.60 4.11 4.28 3.64 3.72 3.81 3.32 3.58 3.80 3.23 3.15 2.90 2.58

Wolverine World Wide Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has remained relatively stable around 0.30, suggesting that about 30% of the company's assets are financed by debt. This indicates a moderate level of leverage.

The debt-to-capital ratio has also shown stability, hovering around 0.67 to 0.69. This indicates that debt accounts for around 67% to 69% of the company's total capital structure, including both debt and equity. The consistency in this ratio suggests a balanced capital structure.

However, the debt-to-equity ratio has fluctuated more significantly, ranging from 1.10 to 2.26. This ratio has generally been above 1, indicating that the company relies more on debt than equity to finance its operations. The increase in this ratio may signal a higher level of financial risk due to the increased reliance on debt financing.

The financial leverage ratio, which measures the company's total assets relative to its equity, has also displayed fluctuations but generally remains high, varying from 2.58 to 7.78. A higher financial leverage ratio indicates higher financial risk and may make the company more vulnerable in times of economic downturn or tight credit conditions.

Overall, Wolverine World Wide Inc maintains a moderate level of leverage as seen in the debt-to-assets and debt-to-capital ratios. However, the fluctuation in the debt-to-equity ratio and the consistently high financial leverage ratio raise some concerns about the company's long-term financial stability and ability to weather potential economic challenges.

Coverage ratios

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
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

The interest coverage ratio measures a company's ability to meet interest obligations on its outstanding debt. A higher ratio indicates a better ability to cover interest expenses.

Analyzing Wolverine World Wide Inc's interest coverage over the past few quarters reveals significant fluctuations. The most recent data shows a negative interest coverage ratio, indicating that the company's operating income is insufficient to cover its interest expenses. This is a concerning trend as it raises questions about the company's financial stability and ability to service its debt obligations.

Looking at historical data, there is inconsistency in Wolverine World Wide Inc's interest coverage. While there have been periods of strong interest coverage in the past, such as in the third quarter of 2022 and fourth quarter of 2019, there have also been periods of weakness, as evidenced by negative ratios in the fourth quarter of 2023 and the first quarter of 2021.

Overall, Wolverine World Wide Inc's interest coverage has displayed volatility and inconsistency, indicating potential challenges in managing debt and interest obligations. It is important for investors and stakeholders to monitor the company's financial performance closely and assess its ability to generate sufficient earnings to cover interest expenses in the future.