World Kinect Corporation (WKC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 2.43% | 2.22% | 1.84% | 2.52% | 4.18% |
| Operating profit margin | 0.50% | 0.42% | 0.46% | 0.46% | 0.68% |
| Pretax margin | 0.23% | 0.14% | 0.24% | 0.32% | 0.79% |
| Net profit margin | 0.16% | 0.11% | 0.19% | 0.24% | 0.54% |
World Kinect Corporation's profitability ratios have been on a declining trend over the period from December 31, 2020, to December 31, 2024.
1. Gross Profit Margin: The company's gross profit margin has decreased from 4.18% in 2020 to 2.43% in 2024. This suggests that the company's ability to generate profit from its core operations has weakened.
2. Operating Profit Margin: Similarly, the operating profit margin has decreased from 0.68% in 2020 to 0.50% in 2024. This indicates that the company's efficiency in managing its operating expenses has declined.
3. Pre-Tax Margin: The pre-tax margin has also decreased significantly from 0.79% in 2020 to 0.23% in 2024. This implies that the company's profitability before taxes has eroded over the years.
4. Net Profit Margin: The net profit margin, which represents the company's bottom line profitability, has fallen from 0.54% in 2020 to 0.16% in 2024. This indicates that the company's ability to generate profit after all expenses, including taxes, has weakened.
In summary, World Kinect Corporation's profitability ratios have shown a consistent decline over the years, indicating challenges in maintaining profitability levels and effective cost management. The company may need to review its cost structure, revenue generation strategies, and operational efficiency to improve its overall profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.13% | 2.68% | 3.35% | 2.40% | 3.06% |
| Return on assets (ROA) | 1.00% | 0.72% | 1.40% | 1.24% | 2.44% |
| Return on total capital | 10.83% | 10.37% | 13.13% | 7.67% | 11.01% |
| Return on equity (ROE) | 3.46% | 2.72% | 5.75% | 3.85% | 5.74% |
World Kinect Corporation's profitability ratios have shown fluctuations over the past five years.
1. Operating return on assets (Operating ROA):
- World Kinect Corporation's Operating ROA ranged from 2.40% to 3.35% over the period. Although there was some variability, the company maintained a relatively stable performance in generating operating income relative to its total assets.
2. Return on assets (ROA):
- ROA declined from 2.44% in 2020 to 1.00% in 2024. This downward trend indicates that the company's ability to generate profit from its total assets has weakened over the years.
3. Return on total capital:
- Return on total capital fluctuated between 7.67% and 13.13%. The company's ability to generate profit from its total capital investment improved in 2022 but remained relatively stable overall.
4. Return on equity (ROE):
- ROE decreased from 5.74% in 2020 to 3.46% in 2024. This decline suggests that the company's profitability in relation to its shareholders' equity has decreased over the years.
Overall, World Kinect Corporation's profitability ratios indicate mixed performance, with some ratios showing stability and others displaying a declining trend. It would be important for the company to further analyze the factors contributing to these changes and take necessary actions to improve profitability in the future.