World Kinect Corporation (WKC)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 42,168,000 | 44,410,500 | 46,164,900 | 46,180,400 | 47,710,600 | 49,585,300 | 53,001,300 | 59,142,700 | 59,043,100 | 55,108,200 | 47,797,800 | 37,761,200 | 31,337,100 | 26,096,400 | 22,228,200 | 18,301,000 | 20,358,300 | 25,014,300 | 29,854,300 | 36,155,400 |
| Property, plant and equipment | US$ in thousands | 513,300 | 505,600 | 495,300 | 496,100 | 515,300 | 509,800 | 507,300 | 497,000 | 484,200 | 475,300 | 476,000 | 473,900 | 348,900 | 334,300 | 334,200 | 334,600 | 342,600 | 347,800 | 368,400 | 360,000 |
| Fixed asset turnover | 82.15 | 87.84 | 93.21 | 93.09 | 92.59 | 97.26 | 104.48 | 119.00 | 121.94 | 115.94 | 100.42 | 79.68 | 89.82 | 78.06 | 66.51 | 54.70 | 59.42 | 71.92 | 81.04 | 100.43 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $42,168,000K ÷ $513,300K
= 82.15
World Kinect Corporation's fixed asset turnover ratio has shown a declining trend over the period from March 31, 2020, to December 31, 2024. The company's fixed asset turnover decreased from a high of 100.43 on March 31, 2020, to a low of 82.15 on December 31, 2024.
The fixed asset turnover ratio measures the efficiency with which a company is generating revenue from its investment in fixed assets. A higher ratio indicates that the company is generating more revenue per dollar invested in fixed assets, reflecting strong operational efficiency. Conversely, a decreasing fixed asset turnover ratio may suggest inefficiencies in asset utilization or declining sales relative to the fixed asset base.
World Kinect Corporation's declining fixed asset turnover ratio may indicate challenges in effectively utilizing its investment in fixed assets to generate sales. Management should assess the reasons behind this trend, such as potential underutilization of assets, changes in selling prices, or shifts in sales volume. By addressing these factors, the company can improve its operational efficiency and enhance its overall financial performance.