World Kinect Corporation (WKC)

Payables 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
Payables	US$ in thousands	2,726,500	2,750,800	2,975,900	2,965,500	3,097,600	3,293,300	2,708,700	3,213,200	3,529,500	3,237,900	3,936,700	3,447,500	2,399,600	2,024,300	1,844,800	1,619,300	1,214,700	1,085,800	1,090,400	1,541,100
Payables turnover		15.09	15.78	15.17	15.22	15.06	14.72	19.14	18.06	16.42	16.70	11.91	10.71	12.73	12.53	11.64	10.82	16.06	22.14	26.40	22.73

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $41,141,700K ÷ $2,726,500K
= 15.09

The payables turnover ratio measures how efficiently a company pays its suppliers. It is calculated by dividing the total purchases (cost of goods sold) by the average accounts payable during a specific period.

Analyzing the data provided for World Kinect Corporation's payables turnover ratio over the past few years, we observe fluctuations in the ratio. The ratio was relatively high in the earlier periods, peaking at 26.40 in June 2020, indicating that the company was paying its suppliers at a faster rate. However, the ratio began to decline steadily from December 2020 (16.06) to March 2021 (10.82), suggesting a slowdown in the payment of accounts payable.

From June 2021 to December 2024, the payables turnover ratio ranged between 10.71 and 19.14, with slight fluctuations over the period. The ratios indicate that the company has generally been taking longer to pay its suppliers compared to the earlier periods.

The lower payables turnover ratios in recent years could be due to various factors such as changes in the company's payment terms with suppliers, increased purchases on credit, or potential liquidity challenges. It is essential for World Kinect Corporation to closely monitor and manage its payables turnover to maintain good relationships with suppliers while ensuring efficient working capital management.