World Kinect Corporation (WKC)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 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 60.18 62.47 67.48 63.84
Receivables turnover 17.67 17.10 21.43 19.73 17.92 17.37 12.09 10.76 13.30 12.84 12.11 10.96 16.44 20.11 21.09 18.21 12.73 13.93 14.03 14.38
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
Working capital turnover 105.07 103.93 112.03 128.49 93.79 114.57 59.80 61.62 33.95 26.18 23.01 18.82 21.31 25.58 22.53 25.38 36.54 35.36 37.70 38.42

World Kinect Corp's activity ratios reflect the efficiency with which the company is managing its assets and liabilities to generate sales and revenue.

1. Inventory turnover: The inventory turnover ratio measures how efficiently the company is managing its inventory levels. World Kinect Corp has shown a consistent ability to quickly sell through its inventory, with ratios above 70 in all quarters. This suggests effective inventory management and timely turnover of goods.

2. Receivables turnover: The receivables turnover ratio indicates how efficiently the company is collecting on its credit sales. World Kinect Corp has shown improvement in this area over time, with steady increases in the turnover ratio. This suggests that the company is effectively managing its accounts receivable and collecting payments in a timely manner.

3. Payables turnover: The payables turnover ratio reflects how quickly the company pays its suppliers. World Kinect Corp has maintained a relatively stable payables turnover ratio, indicating consistency in managing its accounts payable. A higher ratio may suggest that the company is paying its suppliers more quickly.

4. Working capital turnover: The working capital turnover ratio measures how efficiently the company is using its working capital to generate sales. World Kinect Corp has shown fluctuations in this ratio, with peaks and dips across quarters. The higher the ratio, the more efficiently the company is using its working capital to generate revenue.

Overall, World Kinect Corp's activity ratios indicate effective management of inventory, receivables, payables, and working capital, which are essential for operational efficiency and financial health.

Average number of days

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
Days of inventory on hand (DOH) days 5.20 4.93 3.89 3.89 4.91 4.91 7.03 6.73 5.71 6.32 7.25 6.95 6.44 4.42 3.92 3.47 6.06 5.84 5.41 5.72
Days of sales outstanding (DSO) days 20.66 21.35 17.03 18.50 20.36 21.02 30.20 33.93 27.43 28.43 30.13 33.29 22.20 18.15 17.31 20.04 28.67 26.21 26.01 25.38
Number of days of payables days 24.24 24.80 19.07 20.21 22.23 21.85 30.64 34.07 28.67 29.14 31.36 33.74 22.73 16.49 13.82 16.06 26.61 23.96 23.76 22.70

Based on the provided data on World Kinect Corp's activity ratios, we observe the following trends:

1. Days of Inventory on Hand (DOH):
- World Kinect Corp has been managing its inventory efficiently in Q2 and Q1 of 2023, with DOH standing at 3.89 days, indicating rapid turnover of inventory.
- This is an improvement compared to the previous quarters in 2022 where DOH ranged from 4.91 to 7.03 days.
- The decreasing trend in DOH suggests that the company is holding less inventory on hand, potentially reducing holding costs and the risk of obsolescence.

2. Days of Sales Outstanding (DSO):
- World Kinect Corp has been collecting its accounts receivable efficiently in Q2 and Q1 of 2023, with DSO at 17.03 and 18.50 days, respectively.
- This represents an improvement compared to the higher DSO figures in the previous quarters of 2022, which ranged from 20.36 to 33.93 days.
- The decreasing trend in DSO indicates that the company is able to convert its credit sales into cash more quickly, improving liquidity and reducing the risk of bad debts.

3. Number of Days of Payables:
- World Kinect Corp has been managing its payables effectively in Q2 and Q1 of 2023, with the number of days of payables at 19.07 and 20.21 days, respectively.
- This is an improvement compared to the previous quarters in 2022 where days of payables ranged from 21.85 to 34.07 days.
- The decreasing trend in the number of days of payables suggests that the company is taking longer to pay its suppliers, potentially improving cash flow and working capital management.

Overall, the trends in the activity ratios suggest that World Kinect Corp has been improving its efficiency in managing inventory, collecting receivables, and paying payables, which could positively impact the company's financial performance and working capital management.

Long-term

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
Fixed asset turnover 92.59 97.26 104.48 119.00 121.94 115.94 100.42 79.68 89.82 78.06 66.51 54.70 59.42 71.92 81.04 100.43 102.02 102.18 107.31 110.22
Total asset turnover 6.47 6.63 7.61 7.90 7.23 6.91 5.43 4.74 5.27 4.71 4.23 3.72 4.52 5.70 6.12 6.58 6.14 6.46 6.70 6.85

The fixed asset turnover ratio for World Kinect Corp has shown a fluctuating trend over the past eight quarters, with a peak of 121.94 in Q4 2022 and a low of 79.68 in Q1 2022. This ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue, with higher ratios generally reflecting better efficiency.

On the other hand, the total asset turnover ratio has also displayed variability over the same period, ranging from 4.74 in Q1 2022 to 7.90 in Q1 2023. This ratio measures the company's ability to generate sales in relation to its total assets, providing insights into overall asset utilization efficiency.

Overall, both ratios demonstrate that World Kinect Corp has been effective in utilizing its assets to generate revenue, with notable improvements in total asset turnover from Q1 2022 to Q1 2023. However, there may be a need for further analysis to understand the specific factors driving these fluctuations and to ensure sustainable long-term operational efficiency.