World Kinect Corporation (WKC)
Return on assets (ROA)
| 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 |
| Total assets | US$ in thousands | 7,375,300 | 8,164,600 | 5,942,400 | 4,500,300 | 5,992,400 |
| ROA | 0.72% | 1.40% | 1.24% | 2.44% | 2.99% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $52,900K ÷ $7,375,300K
= 0.72%
The return on assets (ROA) of World Kinect Corp has been declining over the past five years. The company's ROA decreased from 2.99% in 2019 to 0.72% in 2023. This downward trend suggests that the company's ability to generate profits from its assets has weakened over time. It is important for World Kinect Corp to address this decline in ROA, as it indicates a decrease in efficiency in utilizing the company's assets to generate profits. Further analysis of the company's financial statements and operational strategies may be necessary to identify the underlying factors contributing to the decreasing ROA and to implement corrective measures to improve asset profitability.