World Kinect Corporation (WKC)
Quick ratio
| 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 | US$ in thousands | 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 | 186,100 | 218,500 | 218,100 | 194,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 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 | 2,891,900 | 2,688,800 | 2,747,900 | 2,728,700 |
| Total current liabilities | US$ in thousands | 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 | 3,162,400 | 2,910,500 | 2,902,300 | 2,873,200 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($304,300K
+ $—K
+ $2,700,000K)
÷ $4,049,700K
= 0.74
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. World Kinect Corp's quick ratio has remained relatively stable over the past eight quarters, ranging from 0.95 to 0.98. This indicates that the company has consistently maintained a strong ability to cover its short-term liabilities with its quick assets, such as cash, marketable securities, and accounts receivable.
With quick ratios consistently near or above 1.0, World Kinect Corp appears to have a healthy liquidity position, suggesting that it should be able to meet its short-term financial obligations without difficulty. This stability in the quick ratio over multiple quarters indicates a prudent management of working capital and a potential ability to withstand unexpected financial challenges. Overall, based on the quick ratio trend, World Kinect Corp seems to have a sound liquidity position to support its operations.