World Kinect Corporation (WKC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 41,141,600 | 46,652,400 | 57,954,100 | 30,548,800 | 19,506,500 |
| Inventory | US$ in thousands | 513,500 | 664,600 | 779,900 | 477,900 | 344,300 |
| Inventory turnover | 80.12 | 70.20 | 74.31 | 63.92 | 56.66 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $41,141,600K ÷ $513,500K
= 80.12
World Kinect Corporation's inventory turnover has shown a consistent upward trend over the past five years, indicating an efficient management of its inventory. The company's inventory turnover ratio has increased from 56.66 in December 31, 2020, to 80.12 in December 31, 2024.
A higher inventory turnover ratio suggests that World Kinect Corporation is selling its inventory faster, which can indicate strong sales performance or effective inventory management strategies. This can lead to reduced carrying costs and potential obsolescence risks associated with holding excessive inventory.
The steady improvement in inventory turnover indicates that the company is effectively managing its inventory levels to meet customer demand efficiently. This may also reflect positively on the company's liquidity position and overall financial health.
Overall, based on the increasing trend in inventory turnover, World Kinect Corporation appears to be effectively managing its inventory to optimize its operations and drive profitability.