World Kinect Corporation (WKC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 382,900 | 304,300 | 298,400 | 652,200 | 658,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,437,800 | 4,049,700 | 4,608,600 | 3,096,700 | 1,684,000 |
| Cash ratio | 0.11 | 0.08 | 0.06 | 0.21 | 0.39 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($382,900K
+ $—K)
÷ $3,437,800K
= 0.11
The cash ratio of World Kinect Corporation has been gradually declining over the years, from 0.39 on December 31, 2020, to 0.11 on December 31, 2024. This indicates that the company's ability to cover its short-term liabilities with its available cash and cash equivalents has decreased. A cash ratio of 0.11 on December 31, 2024 suggests that for every dollar of current liabilities, the company only has $0.11 in cash and cash equivalents, which could potentially pose liquidity challenges. It is important for World Kinect Corporation to closely monitor its cash position and seek ways to improve liquidity to ensure its financial stability and ability to meet its short-term obligations.