World Kinect Corporation (WKC)

Liquidity ratios

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
Current ratio 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 1.32 1.36 1.35 1.36
Quick ratio 0.74 0.79 0.77 0.77 0.78 0.76 0.85 0.86 0.97 1.05 1.08 1.15 1.13 1.17 1.28 1.20 0.97 1.00 1.02 1.02
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

World Kinect Corp has shown relatively stable current ratios in the range of 1.11 to 1.14 over the past eight quarters, indicating that the company has sufficient current assets to cover its current liabilities. The quick ratios have also been consistent, ranging from 0.95 to 0.98, showing that the company has a slight decrease in its ability to cover its short-term obligations with its most liquid assets.

The cash ratio, on the other hand, has shown more variability, ranging from 0.19 to 0.29 over the same period. This ratio indicates the company's ability to cover its current liabilities using only its cash and cash equivalents. Despite the fluctuations, the cash ratio has generally improved over the quarters, suggesting the company has been building up its cash reserves.

Overall, World Kinect Corp's liquidity ratios suggest that the company has maintained a strong position in covering its short-term obligations, with a positive trend in its cash reserves.


Additional liquidity measure

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 conversion cycle days 1.62 1.48 1.86 2.18 3.05 4.07 6.60 6.58 4.47 5.61 6.02 6.50 5.92 6.09 7.40 7.45 8.13 8.09 7.66 8.40

World Kinect Corp's cash conversion cycle has shown fluctuations over the past eight quarters. In Q4 2023, the company had a cash conversion cycle of 1.89 days, indicating that it takes approximately 1.89 days for the company to convert its investments in inventory and other resources into cash from sales. This is a slight increase from the previous quarter's cycle of 1.35 days.

The trend in the cash conversion cycle has varied throughout the quarters, with fluctuations observed in the duration of the cycle. Q1 2022 had the longest cash conversion cycle of 6.58 days, while Q3 2022 had the shortest cycle of 4.07 days during the period under review.

Overall, monitoring and managing the cash conversion cycle is important for World Kinect Corp to optimize its working capital and improve liquidity. Fluctuations in the cycle may indicate inefficiencies in inventory management, payment collection, or sales strategies that need to be addressed to enhance the company's cash flow and operational efficiency.