World Kinect Corporation (WKC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 2.22% | 1.84% | 2.52% | 4.18% | 3.02% |
| Operating profit margin | 0.42% | 0.46% | 0.46% | 0.68% | 0.81% |
| Pretax margin | 0.14% | 0.24% | 0.32% | 0.79% | 0.64% |
| Net profit margin | 0.11% | 0.19% | 0.24% | 0.54% | 0.49% |
World Kinect Corp's profitability ratios have shown a mixed trend over the past five years. The gross profit margin has fluctuated, ranging from a low of 1.84% in 2022 to a high of 4.18% in 2020, indicating varying levels of efficiency in generating revenue after accounting for the cost of goods sold.
The operating profit margin has also demonstrated inconsistency, with a slight increase from 0.46% in 2022 to 0.50% in 2023. This metric reflects the company's ability to control operating expenses and generate profits from its core business activities.
The pretax margin has shown a declining trend over the period, dropping from 0.79% in 2020 to 0.14% in 2023. This suggests that the company's profitability before accounting for taxes has weakened over time due to factors such as increased costs or lower revenues.
Similarly, the net profit margin has shown a decrease from 0.54% in 2020 to 0.11% in 2023, indicating that the company's bottom-line profitability has been impacted. It is important for World Kinect Corp to focus on improving efficiency, controlling costs, and enhancing revenue streams to enhance overall profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.68% | 3.35% | 2.40% | 3.06% | 5.00% |
| Return on assets (ROA) | 0.72% | 1.40% | 1.24% | 2.44% | 2.99% |
| Return on total capital | 10.37% | 13.13% | 7.67% | 11.01% | 16.67% |
| Return on equity (ROE) | 2.72% | 5.75% | 3.85% | 5.74% | 9.46% |
World Kinect Corp's profitability ratios have shown some fluctuations over the past five years.
Starting with the Operating Return on Assets (Operating ROA), the company has demonstrated a stable performance, with a slight decline from 5.33% in 2019 to 3.23% in 2023. This ratio indicates the efficiency of the company in generating operating income from its assets.
The Return on Assets (ROA) has shown more variability, ranging from a high of 2.99% in 2019 to a low of 0.72% in 2023. This ratio reflects the overall profitability of the company in relation to its total assets, with a downward trend observed in recent years.
The Return on Total Capital has also experienced fluctuations, with a peak of 12.68% in 2019 and a low of 6.36% in 2021. This ratio evaluates the company's ability to generate returns from both equity and debt capital employed in its operations.
Lastly, the Return on Equity (ROE) has mirrored the trends of the other ratios, showcasing a decrease from 9.46% in 2019 to 2.72% in 2023. ROE measures the return earned on shareholders' equity investment in the company.
Overall, World Kinect Corp's profitability ratios have displayed some inconsistencies over the years, suggesting potential challenges in maintaining consistent profitability levels and efficiency in utilizing assets and capital. Further analysis of the company's financial performance and strategies may be required to understand the underlying factors driving these fluctuations.