World Kinect Corporation (WKC)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 42,168,000 | 44,410,500 | 46,164,900 | 46,180,400 | 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 |
| Total current assets | US$ in thousands | 3,959,200 | 4,170,700 | 4,395,600 | 4,392,600 | 4,503,800 | 4,591,300 | 4,045,100 | 4,613,800 | 5,238,100 | 5,049,300 | 5,894,000 | 5,025,300 | 4,019,700 | 3,693,200 | 3,358,600 | 3,064,500 | 2,639,300 | 2,534,800 | 2,931,400 | 3,533,800 |
| Total current liabilities | US$ in thousands | 3,437,800 | 3,583,100 | 3,818,900 | 3,862,400 | 4,049,700 | 4,114,200 | 3,572,000 | 4,153,500 | 4,608,600 | 4,568,300 | 5,094,700 | 4,412,500 | 3,096,700 | 2,696,500 | 2,392,600 | 2,092,200 | 1,684,000 | 1,557,000 | 1,606,600 | 2,109,300 |
| Working capital turnover | 80.87 | 75.58 | 80.05 | 87.10 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $42,168,000K ÷ ($3,959,200K – $3,437,800K)
= 80.87
World Kinect Corporation's working capital turnover has exhibited fluctuations over the period analyzed. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio suggests that the company is operating efficiently, while a lower ratio may indicate inefficiencies or excess working capital.
The data shows that the working capital turnover for World Kinect Corporation started at a relatively high level of 25.38 on March 31, 2020. It then decreased to 18.82 by March 31, 2021, indicating a decline in the efficiency of working capital utilization. However, the ratio improved in the subsequent quarters, reaching a peak of 128.49 on March 31, 2023, suggesting a significant enhancement in efficiency.
From March 31, 2023, the working capital turnover ratio gradually decreased, signaling a potential decrease in efficiency in utilizing working capital. By December 31, 2024, the ratio stood at 80.87, which is lower than the peak achieved in March 2023 but higher than the lower levels seen in the earlier periods.
Overall, the trend in World Kinect Corporation's working capital turnover ratio demonstrates fluctuations, with periods of both improvement and decline. It is essential for the company to closely monitor and manage its working capital to ensure optimal efficiency in operations and financial performance.