World Kinect Corporation (WKC)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 67,400 | 52,900 | 114,100 | 73,700 | 109,600 |
| Total stockholders’ equity | US$ in thousands | 1,948,700 | 1,943,000 | 1,984,900 | 1,912,700 | 1,909,300 |
| ROE | 3.46% | 2.72% | 5.75% | 3.85% | 5.74% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $67,400K ÷ $1,948,700K
= 3.46%
World Kinect Corporation's return on equity (ROE) has shown fluctuations over the past five years.
In December 31, 2020, the ROE stood at 5.74%, indicating that for every dollar of shareholder equity, the company generated a profit of 5.74 cents. However, the ROE saw a slight decline in the following year to 3.85%, suggesting a decrease in profitability relative to the shareholders' investment.
Notably, in December 31, 2022, the ROE increased to 5.75%, showing a recovery in profitability and an improvement in utilizing shareholder equity to generate returns.
Despite this improvement, the ROE declined in December 31, 2023, to 2.72%, indicating a decrease in the company's ability to generate profits relative to the equity invested by shareholders.
The most recent data point, December 31, 2024, shows a modest increase in ROE to 3.46%. This suggests a slight improvement in profitability relative to the previous year.
Overall, World Kinect Corporation's ROE has shown variability over the years, with the company experiencing fluctuations in its profitability and efficiency in generating returns for shareholders. It would be essential for the company to focus on strategies to enhance its profitability and effectively utilize its shareholders' equity for sustained long-term growth.