World Kinect Corporation (WKC)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 47,710,600 | 59,043,100 | 31,337,000 | 20,358,300 | 36,819,000 |
| Receivables | US$ in thousands | 2,700,000 | 3,294,100 | 2,355,300 | 1,238,400 | 2,891,900 |
| Receivables turnover | 17.67 | 17.92 | 13.30 | 16.44 | 12.73 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $47,710,600K ÷ $2,700,000K
= 17.67
The receivables turnover ratio for World Kinect Corp has fluctuated over the past five years. In 2023, the receivables turnover ratio was 17.44, slightly lower than the previous year's ratio of 17.92. This indicates that the company collected its accounts receivable approximately 17 times during the year.
Comparing these figures to previous years, we observe a general upward trend in receivables turnover from 2019 to 2022, suggesting an improvement in the company's ability to efficiently collect its outstanding receivables. However, the slight decrease in 2023 may indicate a potential slowdown in collection efficiency compared to the prior year.
Overall, a higher receivables turnover ratio is generally preferred as it implies a faster collection of accounts receivable and better liquidity management. However, it is essential to consider industry norms and company-specific factors when interpreting this ratio in isolation.