World Kinect Corporation (WKC)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	41,141,700	43,410,700	45,151,800	45,130,800	46,652,400	48,477,200	51,852,300	58,022,000	57,954,200	54,086,300	46,900,700	36,933,600	30,548,800	25,358,200	21,473,500	17,516,400	19,506,500	24,041,000	28,789,300	35,035,600
Inventory	US$ in thousands	513,500	619,900	646,700	654,600	664,600	654,200	552,600	618,600	779,900	727,500	903,800	680,500	477,900	439,300	426,500	333,700	344,300	291,000	308,800	332,800
Inventory turnover		80.12	70.03	69.82	68.94	70.20	74.10	93.83	93.80	74.31	74.35	51.89	54.27	63.92	57.72	50.35	52.49	56.66	82.62	93.23	105.28

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $41,141,700K ÷ $513,500K
= 80.12

Inventory turnover, a crucial financial ratio that measures how efficiently a company is managing its inventory, is calculated by dividing the cost of goods sold by the average inventory during a given period. World Kinect Corporation's inventory turnover has fluctuated over the reporting periods mentioned in the dataset.

In March 2020, the company had a high inventory turnover of 105.28, indicating that the company sold its entire inventory more than 100 times during that period. This high turnover suggests efficient management of inventory. However, the turnover ratio gradually decreased over the subsequent quarters, reaching a low of 50.35 in June 2021. This could signal issues such as overstocking, slow sales, or inefficient inventory management.

From September 2021 to December 2022, there was an increase in inventory turnover, peaking at 93.83 in June 2023. This improvement suggests that the company enhanced its inventory management practices during this period. However, the ratio declined again by December 2024, standing at 80.12.

Overall, World Kinect Corporation has shown variability in its inventory turnover, indicating fluctuations in how efficiently the company is managing its inventory. It is important for the company to analyze the reasons behind these fluctuations and take appropriate actions to optimize its inventory turnover for sustained financial health.