World Kinect Corporation (WKC)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 382,900 | 373,800 | 524,600 | 321,300 | 304,300 | 335,600 | 293,900 | 216,700 | 298,400 | 280,300 | 385,800 | 266,200 | 652,200 | 796,000 | 742,700 | 735,300 | 658,800 | 572,700 | 645,700 | 537,000 |
| Short-term investments | US$ in thousands | — | — | 10,500 | 13,400 | — | 14,500 | — | — | — | 11,100 | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 2,432,600 | 2,500,000 | 2,592,000 | 2,679,000 | 2,700,000 | 2,900,000 | 2,473,300 | 2,997,200 | 3,294,100 | 3,172,900 | 3,954,700 | 3,510,200 | 2,355,300 | 2,032,500 | 1,835,000 | 1,669,200 | 1,238,400 | 1,244,100 | 1,415,900 | 1,985,100 |
| 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 |
| 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 |
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 declining trend over the past few years, starting at a healthy level of 1.20 on March 31, 2020, and decreasing to 0.82 on December 31, 2024. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets.
While a quick ratio above 1 indicates that the company can meet its current obligations using its liquid assets, it is important to note that a decreasing quick ratio could signal potential liquidity challenges. A quick ratio below 1 may imply that the company may struggle to pay off its short-term debts using its current liquid assets.
For World Kinect Corporation, the downward trend in the quick ratio may necessitate a closer look at its liquidity management and ability to generate sufficient cash flow to meet its short-term obligations. It might be beneficial for the company to explore strategies to improve its liquidity position to ensure financial stability in the future.