World Kinect Corporation (WKC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,943,000 | 1,984,900 | 1,912,700 | 1,909,300 | 1,890,400 |
| ROE | 2.72% | 5.75% | 3.85% | 5.74% | 9.46% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $52,900K ÷ $1,943,000K
= 2.72%
World Kinect Corp's return on equity (ROE) has been exhibiting a declining trend over the past five years. In 2023, the ROE stands at a relatively low 2.72%, down from 5.75% in 2022 and 9.46% in 2019. This downward trajectory suggests a decrease in the company's ability to generate profit from shareholders' equity.
The declining ROE could be attributed to various factors such as decreasing net income, rising shareholder equity, or a combination of both. A lower ROE may indicate inefficiency in utilizing shareholder funds to generate profits.
Further analysis would be required to identify the specific reasons behind the decreasing ROE and to implement strategic measures to improve the company's profitability and efficiency in the future.