World Kinect Corporation (WKC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 42,168,000 | 47,710,600 | 59,043,100 | 31,337,000 | 20,358,300 |
| Total current assets | US$ in thousands | 3,959,200 | 4,503,800 | 5,238,100 | 4,019,700 | 2,639,300 |
| Total current liabilities | US$ in thousands | 3,437,800 | 4,049,700 | 4,608,600 | 3,096,700 | 1,684,000 |
| Working capital turnover | 80.87 | 105.07 | 93.79 | 33.95 | 21.31 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $42,168,000K ÷ ($3,959,200K – $3,437,800K)
= 80.87
The working capital turnover of World Kinect Corporation has exhibited a significant upward trend over the last five years, reflecting an improvement in the efficiency of the company's working capital management.
The working capital turnover ratio increased from 21.31 in December 31, 2020, to 33.95 in 2021, indicating that the company generated $33.95 in revenue for every dollar of working capital invested. This suggests that World Kinect Corporation was able to use its working capital more effectively to drive sales and operations during the year.
The ratio further increased to 93.79 in December 31, 2022, and rose to even higher levels of 105.07 in 2023 and 80.87 in 2024. These elevated values suggest that the company has continued to optimize its working capital management, potentially through more efficient inventory management, collections from customers, and payment to suppliers.
Overall, the upward trajectory of World Kinect Corporation's working capital turnover ratio indicates a positive trend in the company's operational efficiency and financial performance, emphasizing its ability to generate revenue from its working capital investments.