World Kinect Corporation (WKC)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	35,706,900	36,361,900	37,507,700	38,221,600
Payables	US$ in thousands	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	2,602,700	2,386,900	2,441,400	2,376,600
Payables turnover		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	13.72	15.23	15.36	16.08

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $46,652,400K ÷ $3,097,600K
= 15.06

The payables turnover ratio for World Kinect Corp has shown fluctuations over the past eight quarters, ranging from a low of 10.71 in Q1 2022 to a high of 19.14 in Q2 2023. This ratio measures the efficiency with which the company is managing its accounts payable by paying off its suppliers.

The increasing trend from Q1 2022 to Q2 2023 indicates an improvement in how quickly the company is settling its payables, which can be a positive sign of financial health and effective working capital management. However, the ratio decreased slightly in Q3 and Q4 2023, which could be worth further investigation to understand the underlying reasons for the decline.

Overall, the payables turnover ratio for World Kinect Corp suggests that the company has been effectively managing its accounts payable, but it is important to continue monitoring this ratio to ensure sustainable and efficient financial operations.