World Kinect Corporation (WKC)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.15 | 1.11 | 1.14 | 1.30 | 1.57 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,959,200K ÷ $3,437,800K
= 1.15
World Kinect Corporation's current ratio has shown a declining trend over the past five years, decreasing from 1.57 in December 31, 2020, to 1.15 in December 31, 2024. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A current ratio of 1 or higher is generally considered acceptable, indicating the company has sufficient current assets to cover its current liabilities.
While World Kinect Corporation's current ratio has remained above the desirable threshold of 1, the decreasing trend suggests a potential weakening in the company's liquidity position. A ratio below 1 would indicate the company may have difficulty meeting its short-term obligations. It would be prudent for stakeholders to closely monitor this trend and assess the company's ability to manage its short-term financial obligations effectively.