World Kinect Corporation (WKC)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.15 | 1.16 | 1.15 | 1.14 | 1.11 | 1.12 | 1.13 | 1.11 | 1.14 | 1.11 | 1.16 | 1.14 | 1.30 | 1.37 | 1.40 | 1.46 | 1.57 | 1.63 | 1.82 | 1.68 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,959,200K ÷ $3,437,800K
= 1.15
The current ratio of World Kinect Corporation has shown a declining trend over the past few years, indicating potential liquidity concerns. The ratio, which measures the company's ability to meet its short-term obligations with its current assets, decreased from 1.68 as of March 31, 2020, to 1.15 as of December 31, 2024.
While the current ratio remained above 1 throughout the period, reflecting that the company had more current assets than current liabilities, the downward trajectory suggests a potential weakening in the company's liquidity position. A current ratio below 2 is generally considered a sign of caution, as it may indicate a lack of flexibility in meeting short-term obligations.
It is advisable for World Kinect Corporation to closely monitor its current assets and liabilities management to ensure that it can meet its upcoming financial commitments promptly. Management may need to evaluate its working capital management practices, such as optimizing inventory levels, improving accounts receivable collection, and controlling short-term debt levels, to stabilize or improve the current ratio in the future.