World Kinect Corporation (WKC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 382,900 | 304,300 | 298,400 | 652,200 | 658,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 2,432,600 | 2,700,000 | 3,294,100 | 2,355,300 | 1,238,400 |
| Total current liabilities | US$ in thousands | 3,437,800 | 4,049,700 | 4,608,600 | 3,096,700 | 1,684,000 |
| Quick ratio | 0.82 | 0.74 | 0.78 | 0.97 | 1.13 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($382,900K
+ $—K
+ $2,432,600K)
÷ $3,437,800K
= 0.82
The quick ratio of World Kinect Corporation has shown a gradual decline from 1.13 on December 31, 2020, to 0.82 on December 31, 2024. This downward trend indicates a weakening liquidity position over the years.
A quick ratio below 1 suggests that the company may have difficulties meeting its short-term obligations using its most liquid assets. The ratio of less than 1 indicates that the company may not have enough liquid assets, such as cash and equivalents, to cover its current liabilities.
It is important for the company to closely monitor its liquidity position to ensure it can meet its short-term obligations without relying on external sources of funding. A lower quick ratio can also indicate potential cash flow issues or inefficient management of working capital.