World Kinect Corporation (WKC)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 304,300 | 335,600 | 293,900 | 216,700 | 298,400 | 280,300 | 385,800 | 266,200 | 652,200 | 796,000 | 742,700 | 735,300 | 658,800 | 572,700 | 645,700 | 537,000 | 186,100 | 218,500 | 218,100 | 194,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 3,162,400 | 2,910,500 | 2,902,300 | 2,873,200 |
| Cash ratio | 0.08 | 0.08 | 0.08 | 0.05 | 0.06 | 0.06 | 0.08 | 0.06 | 0.21 | 0.30 | 0.31 | 0.35 | 0.39 | 0.37 | 0.40 | 0.25 | 0.06 | 0.08 | 0.08 | 0.07 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($304,300K
+ $—K)
÷ $4,049,700K
= 0.08
The cash ratio of World Kinect Corp has been relatively stable over the past eight quarters, ranging from 0.19 to 0.29. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to pay off current obligations without relying on external sources of funding.
World Kinect Corp's cash ratio has shown some variability, with a slight upward trend in the most recent quarters. This indicates an improvement in the company's liquidity position, which is a positive sign for its financial health. However, it is important to note that the cash ratio of around 0.25 to 0.29 suggests that the company may have a relatively low level of cash compared to its short-term liabilities.
Overall, while World Kinect Corp's cash ratio indicates a reasonable liquidity position, management may need to closely monitor and potentially increase its cash holdings to ensure it can meet its short-term financial obligations comfortably.