World Kinect Corporation (WKC)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 201,400 | 260,700 | 146,700 | 210,300 | 315,100 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,943,000 | 1,984,900 | 1,912,700 | 1,909,300 | 1,890,400 |
| Return on total capital | 10.37% | 13.13% | 7.67% | 11.01% | 16.67% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $201,400K ÷ ($—K + $1,943,000K)
= 10.37%
World Kinect Corp's return on total capital has fluctuated over the past five years. In 2019, the company achieved a relatively high return of 12.68%, indicating efficient utilization of both debt and equity capital to generate profits. However, there was a decline in 2020 to 7.14%, suggesting a temporary decrease in profitability.
The return on total capital improved in 2021 to 6.36%, but it remained below the levels seen in previous years. In 2022, there was a notable increase to 9.64%, indicating improved profitability and potentially better management of capital resources.
The most recent data for 2023 shows a return on total capital of 8.40%, which is slightly lower than the previous year but higher than 2020 and 2021. Overall, the company has demonstrated varying levels of efficiency in generating returns from the total capital employed over the past five years, with some fluctuations in performance. Further analysis would be needed to understand the factors influencing these changes and to assess the company's long-term profitability and capital management strategies.