World Kinect Corporation (WKC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 46,652,400 | 57,954,100 | 30,548,800 | 19,506,500 | 35,707,000 |
| Payables | US$ in thousands | 3,097,600 | 3,529,500 | 2,399,600 | 1,214,700 | 2,602,700 |
| Payables turnover | 15.06 | 16.42 | 12.73 | 16.06 | 13.72 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $46,652,400K ÷ $3,097,600K
= 15.06
World Kinect Corp's payables turnover ratio has fluctuated over the past five years, ranging from 12.73 to 16.42. This ratio indicates how efficiently the company is managing its accounts payable. A higher turnover ratio suggests that the company is paying its suppliers more frequently, which could indicate strong relationships with suppliers or efficient cash flow management.
In 2023, the payables turnover ratio decreased to 15.06 from 16.42 in 2022. This could suggest that World Kinect Corp took longer to pay its suppliers in 2023 compared to the previous year. However, it is still higher than the ratios in 2021 and 2019, indicating a relatively efficient management of accounts payable.
Overall, World Kinect Corp has shown varying levels of efficiency in managing its payables over the past five years, with some fluctuations in the ratio. Further analysis of the company's payment terms, supplier relationships, and cash flow management may provide additional insights into its payables turnover performance.