World Kinect Corporation (WKC)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 7,375,300 | 8,164,600 | 5,942,400 | 4,500,300 | 5,992,400 |
| Operating ROA | 2.68% | 3.35% | 2.40% | 3.06% | 5.00% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $198,000K ÷ $7,375,300K
= 2.68%
World Kinect Corp's operating return on assets (operating ROA) has fluctuated over the past five years. In 2023, the operating ROA was 3.23%, slightly lower than the previous year but higher than in 2021. This indicates that the company's ability to generate operating income from its assets decreased slightly compared to the previous year.
Comparing the 2023 operating ROA to 2019, there has been a significant decline from 5.33% to 3.23%. This suggests that World Kinect Corp may be experiencing challenges in efficiently utilizing its assets to generate operating income over the years.
It is important for the company to analyze the factors contributing to this trend and identify areas for improvement in asset utilization and operating income generation. Further investigation into the company's operational efficiency and profitability may be necessary to address the declining trend in operating ROA.