World Kinect Corporation (WKC)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 52,900 | 114,100 | 73,700 | 109,600 | 178,900 |
| Revenue | US$ in thousands | 47,710,600 | 59,043,100 | 31,337,000 | 20,358,300 | 36,819,000 |
| Net profit margin | 0.11% | 0.19% | 0.24% | 0.54% | 0.49% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $52,900K ÷ $47,710,600K
= 0.11%
World Kinect Corp's net profit margin has shown a declining trend over the past five years. The net profit margin decreased from 0.49% in 2019 to 0.11% in 2023. This indicates that the company's profitability in relation to its total revenue has been gradually diminishing. A lower net profit margin could be a cause for concern as it suggests that the company is retaining a smaller portion of its revenue as profit. Further investigation into the company's cost structure, operating efficiency, and revenue generation strategies may be warranted to address this decline in profitability.