World Kinect Corporation (WKC)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 210,600 | 198,000 | 273,200 | 142,600 | 137,900 |
| Total assets | US$ in thousands | 6,731,800 | 7,375,300 | 8,164,600 | 5,942,400 | 4,500,300 |
| Operating ROA | 3.13% | 2.68% | 3.35% | 2.40% | 3.06% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $210,600K ÷ $6,731,800K
= 3.13%
Based on the data provided for World Kinect Corporation's operating return on assets (Operating ROA) from December 31, 2020, to December 31, 2024, we observe the following trend:
- In 2020, the Operating ROA stood at 3.06%, indicating that for every dollar of assets employed in operations, the company generated a return of 3.06 cents.
- The Operating ROA then decreased to 2.40% by December 31, 2021, suggesting a slight decline in the company's operational efficiency in utilizing its assets to generate profits.
- However, there was an improvement in performance in 2022, with the Operating ROA increasing to 3.35%, indicating that the company effectively utilized its assets to generate higher returns.
- The Operating ROA decreased again to 2.68% by December 31, 2023, signaling a lower return on assets compared to the previous year.
- Finally, by December 31, 2024, the Operating ROA recovered slightly to 3.13%, indicating a modest improvement in the company's operational efficiency.
Overall, the trend in World Kinect Corporation's Operating ROA shows fluctuations over the years, with some years experiencing higher returns on assets while others show a slight decline. It is essential for the company to continue monitoring and analyzing this metric to ensure optimal utilization of assets in driving profitability.