World Kinect Corporation (WKC)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 47,710,600 | 49,585,300 | 53,001,300 | 59,142,700 | 59,043,100 | 55,108,200 | 47,797,800 | 37,761,200 | 31,337,100 | 26,096,400 | 22,228,200 | 18,301,000 | 20,358,300 | 25,014,300 | 29,854,300 | 36,155,400 | 36,819,000 | 37,449,500 | 38,556,300 | 39,247,700 |
| Receivables | US$ in thousands | 2,700,000 | 2,900,000 | 2,473,300 | 2,997,200 | 3,294,100 | 3,172,900 | 3,954,700 | 3,510,200 | 2,355,300 | 2,032,500 | 1,835,000 | 1,669,200 | 1,238,400 | 1,244,100 | 1,415,900 | 1,985,100 | 2,891,900 | 2,688,800 | 2,747,900 | 2,728,700 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $47,710,600K ÷ $2,700,000K
= 17.67
The receivables turnover ratio for World Kinect Corp has shown variability over the past eight quarters, ranging from a low of 10.76 in Q1 2022 to a high of 21.43 in Q2 2023. Overall, the company has maintained a relatively healthy turnover rate, indicating its ability to efficiently collect outstanding receivables.
The upward trend in Q2 and Q3 2023 suggests that the company has improved its collection practices, potentially by implementing stricter credit policies or enhancing its billing and collection processes. Conversely, the lower ratios recorded in Q1 and Q2 2022 may indicate delayed payments from customers or an increase in credit sales during those periods.
It is essential for World Kinect Corp to monitor its receivables turnover consistently to ensure optimal cash flow and liquidity. By analyzing trends in this ratio, the company can identify areas of improvement in its credit management practices and take proactive measures to maintain a healthy financial position.