World Kinect Corporation (WKC)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 198,000 | 273,200 | 142,600 | 137,900 | 299,700 |
| Revenue | US$ in thousands | 47,710,600 | 59,043,100 | 31,337,000 | 20,358,300 | 36,819,000 |
| Operating profit margin | 0.42% | 0.46% | 0.46% | 0.68% | 0.81% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $198,000K ÷ $47,710,600K
= 0.42%
The operating profit margin of World Kinect Corp has shown fluctuations over the past five years. In 2023, the operating profit margin was 0.50%, slightly higher than the previous year's margin of 0.46%. However, it is lower compared to the margins reported in 2021 and 2020, which were 0.49% and 0.85% respectively. The highest operating profit margin was recorded in 2019 at 0.87%.
The downward trend in the operating profit margin from 2019 to 2023 indicates that the company's profitability from core operations has been declining over the years. This may be a result of various factors such as increasing expenses, lower sales volumes, or pricing pressures.
It is essential for World Kinect Corp to closely monitor its operating expenses and revenue generation strategies to improve its operating profit margin in the future and ensure sustainable profitability. Additionally, the company may need to assess its cost structure and explore opportunities for cost reductions or revenue enhancements to enhance its overall financial performance.