World Kinect Corporation (WKC)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 42,168,000 | 47,710,600 | 59,043,100 | 31,337,000 | 20,358,300 |
| Property, plant and equipment | US$ in thousands | 513,300 | 515,300 | 484,200 | 348,900 | 342,600 |
| Fixed asset turnover | 82.15 | 92.59 | 121.94 | 89.82 | 59.42 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $42,168,000K ÷ $513,300K
= 82.15
The fixed asset turnover ratio of World Kinect Corporation has shown significant fluctuations over the past five years. The ratio increased from 59.42 in 2020 to 121.94 in 2022, indicating a substantial improvement in the company's ability to generate sales revenue from its fixed assets. However, in 2023, the ratio dropped to 92.59, suggesting a slight decline in efficiency in utilizing fixed assets to generate sales. This trend continued in 2024, with the fixed asset turnover ratio further decreasing to 82.15.
Overall, although there have been fluctuations in the fixed asset turnover ratio of World Kinect Corporation, the company has generally demonstrated a strong ability to generate sales relative to its investment in fixed assets. Further analysis would be needed to understand the factors behind the fluctuations and to assess the company's long-term efficiency in utilizing its fixed assets.