World Kinect Corporation (WKC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 2.43% | 2.25% | 2.19% | 2.27% | 2.22% | 2.23% | 2.17% | 1.90% | 1.84% | 1.85% | 1.88% | 2.19% | 2.52% | 2.83% | 3.40% | 4.29% | 4.18% | 3.89% | 3.57% | 3.10% |
| Operating profit margin | 0.50% | 0.37% | 0.36% | 0.43% | 0.42% | 0.59% | 0.60% | 0.50% | 0.46% | 0.41% | 0.35% | 0.39% | 0.46% | 0.49% | 0.56% | 0.57% | 0.68% | 0.73% | 0.79% | 0.83% |
| Pretax margin | 0.23% | 0.34% | 0.32% | 0.15% | 0.14% | 0.28% | 0.29% | 0.23% | 0.24% | 0.25% | 0.22% | 0.28% | 0.32% | 0.30% | 0.69% | 0.72% | 0.79% | 0.88% | 0.61% | 0.67% |
| Net profit margin | 0.16% | 0.30% | 0.29% | 0.12% | 0.11% | 0.22% | 0.22% | 0.19% | 0.19% | 0.20% | 0.18% | 0.21% | 0.24% | 0.21% | 0.52% | 0.48% | 0.54% | 0.68% | 0.46% | 0.51% |
World Kinect Corporation's profitability ratios have shown some fluctuations over the past few years. The gross profit margin has declined from 3.10% in March 2020 to 2.43% in December 2024. Similarly, the operating profit margin decreased from 0.83% in March 2020 to 0.50% in December 2024. The pretax margin also experienced a downward trend, falling from 0.67% in March 2020 to 0.23% in December 2024. Lastly, the net profit margin decreased from 0.51% in March 2020 to 0.16% in December 2024. These declining trends in profitability margins may indicate challenges in managing costs and generating sufficient revenues to maintain profitability over the years. It would be important for the company to review its cost structure and revenue streams to improve profitability in the future.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.13% | 2.37% | 2.32% | 2.74% | 2.69% | 3.90% | 4.58% | 3.96% | 3.35% | 2.85% | 1.91% | 1.84% | 2.40% | 2.28% | 2.36% | 2.13% | 3.06% | 4.14% | 4.85% | 5.46% |
| Return on assets (ROA) | 1.00% | 1.92% | 1.89% | 0.80% | 0.72% | 1.45% | 1.67% | 1.48% | 1.40% | 1.36% | 1.00% | 1.02% | 1.24% | 0.98% | 2.19% | 1.77% | 2.44% | 3.86% | 2.78% | 3.33% |
| Return on total capital | 10.83% | 13.33% | 13.42% | 10.25% | 10.37% | 14.24% | 15.26% | 13.65% | 13.13% | 11.78% | 9.19% | 8.11% | 7.67% | 6.53% | 10.19% | 9.05% | 11.02% | 14.22% | 13.59% | 17.17% |
| Return on equity (ROE) | 3.46% | 6.57% | 6.68% | 2.94% | 2.72% | 5.51% | 5.93% | 5.51% | 5.75% | 5.60% | 4.59% | 4.18% | 3.85% | 2.84% | 5.90% | 4.49% | 5.74% | 8.86% | 7.49% | 9.92% |
World Kinect Corporation's profitability ratios have shown varying trends over the years.
1. Operating return on assets (Operating ROA) has been gradually decreasing from 5.46% in March 2020 to 2.37% in December 2024, indicating a decline in operational efficiency and profitability.
2. Return on assets (ROA) has also experienced a downward trend, dropping from 3.33% in March 2020 to 1.00% in June 2022 before slightly improving to 1.00% by December 2024. This suggests a decrease in the company's ability to generate profits from its assets.
3. Return on total capital shows a fluctuating pattern, with some periods of improvement and decline. From March 2020 to December 2024, it varied between 6.53% and 15.26%, reflecting inconsistency in utilizing the total capital effectively to generate returns.
4. Return on equity (ROE) has demonstrated a similar trend to ROA, declining from 9.92% in March 2020 to 3.46% in December 2024. This indicates a reduction in the company's ability to generate returns for its shareholders.
Overall, the decreasing trend in these profitability ratios signifies potential challenges faced by World Kinect Corporation in optimizing its assets and capital to generate profits and returns for its stakeholders. Further analysis and strategic decisions may be needed to address these declining profitability indicators.