World Kinect Corporation (WKC)

Liquidity ratios

	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
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
Quick ratio	0.82	0.80	0.82	0.78	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
Cash ratio	0.11	0.10	0.14	0.09	0.08	0.09	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

World Kinect Corporation's liquidity ratios have shown a general decline over the years based on the provided data.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has decreased from 1.68 in March 2020 to 1.15 in December 2024. This declining trend indicates a potential weakening in the company's short-term liquidity position over time.

The quick ratio, also known as the acid-test ratio, reflects the company's ability to pay off its current liabilities without relying on the sale of inventory. The quick ratio has also decreased from 1.20 in March 2020 to 0.82 in December 2024. This declining trend suggests a reduction in the company's ability to meet its short-term obligations using its most liquid assets.

Moreover, the cash ratio, which specifically measures the company's ability to cover its current liabilities with cash and cash equivalents, has also experienced a decrease over the years. The cash ratio has declined from 0.25 in March 2020 to 0.11 in December 2024, indicating a diminishing capacity to settle short-term debts solely with cash holdings.

In conclusion, World Kinect Corporation's liquidity ratios, including the current ratio, quick ratio, and cash ratio, have shown a downward trajectory over the years, signaling potential liquidity challenges and the need for careful management of short-term financial obligations.

Additional liquidity measure

		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
Cash conversion cycle	days	1.42	2.63	1.66	2.48	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

The cash conversion cycle of World Kinect Corporation has been showing a decreasing trend over the past few years, indicating an improvement in managing its cash flow. The cycle, which represents the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales, decreased from 7.45 days as of March 31, 2020, to 1.42 days as of December 31, 2024.

A lower cash conversion cycle implies that the company is able to efficiently manage its working capital and turn its resources into cash quicker, which can be beneficial for its overall liquidity and financial health. The decreasing trend suggests that World Kinect Corporation has been streamlining its operations, enhancing inventory management, and optimizing its sales and collection processes.

By significantly reducing its cash conversion cycle to just 1.42 days by the end of December 2024, World Kinect Corporation appears to have become more agile and effective in managing its cash flow, potentially boosting its financial performance and ability to meet financial obligations promptly. Continued monitoring of the cash conversion cycle will be important to ensure sustained efficiency in the company's working capital management.