World Kinect Corporation (WKC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 47,710,600 | 59,043,100 | 31,337,000 | 20,358,300 | 36,819,000 |
| Property, plant and equipment | US$ in thousands | 515,300 | 484,200 | 348,900 | 342,600 | 360,900 |
| Fixed asset turnover | 92.59 | 121.94 | 89.82 | 59.42 | 102.02 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $47,710,600K ÷ $515,300K
= 92.59
World Kinect Corp's fixed asset turnover has fluctuated over the past five years, ranging from a low of 59.42 in 2020 to a high of 121.94 in 2022. This ratio measures the efficiency of the company in generating revenue from its fixed assets. A higher fixed asset turnover indicates that the company is generating more revenue relative to its investment in fixed assets.
In 2023, World Kinect Corp's fixed asset turnover decreased to 92.59 from the previous year, suggesting a decrease in the efficiency of utilizing its fixed assets to generate revenue. However, it is important to consider the industry benchmark and compare the ratio with competitors to assess the company's performance accurately. Monitoring changes in fixed asset turnover over time can provide insights into the company's operational efficiency and asset utilization strategies.