World Kinect Corporation (WKC)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,026,400 | 1,058,200 | 1,089,100 | 788,200 | 851,800 |
| Revenue | US$ in thousands | 42,168,000 | 47,710,600 | 59,043,100 | 31,337,000 | 20,358,300 |
| Gross profit margin | 2.43% | 2.22% | 1.84% | 2.52% | 4.18% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,026,400K ÷ $42,168,000K
= 2.43%
Based on the data provided, World Kinect Corporation's gross profit margin has shown a declining trend over the five-year period from 2020 to 2024. The gross profit margin decreased from 4.18% in 2020 to 2.52% in 2021, and further dropped to 1.84% in 2022. However, there was a slight improvement in 2023, with the gross profit margin increasing to 2.22%, and a further increase to 2.43% in 2024.
The decreasing trend in the gross profit margin indicates potential challenges in managing the cost of goods sold relative to revenue. The company may be facing pressures such as increasing production costs, pricing competition, or inefficiencies in production processes.
It is important for World Kinect Corporation to closely monitor its cost structure, pricing strategies, and operational efficiencies to improve its gross profit margin and overall profitability. Further analysis of the factors contributing to the fluctuations in the gross profit margin is recommended to implement targeted strategies for improvement.