World Kinect Corporation (WKC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 211,000 | 201,400 | 260,700 | 146,700 | 210,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,948,700 | 1,943,000 | 1,984,900 | 1,912,700 | 1,909,300 |
| Return on total capital | 10.83% | 10.37% | 13.13% | 7.67% | 11.01% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $211,000K ÷ ($—K + $1,948,700K)
= 10.83%
The return on total capital for World Kinect Corporation has shown variability over the past five years. In 2020, the return on total capital was 11.01%, indicating a reasonable return on the company's capital investments. However, in 2021, there was a decline to 7.67%, which may suggest some inefficiencies in capital allocation or performance challenges during that year.
The subsequent years saw improvements in the return on total capital, with an increase to 13.13% in 2022, demonstrating enhanced profitability and potentially more effective utilization of capital. Despite a slight decrease in 2023 to 10.37%, the return remained above the 10% mark, indicating continued profitability and efficient capital management.
In 2024, the return on total capital for World Kinect Corporation was 10.83%, maintaining a solid performance level. Overall, while there have been fluctuations in the return on total capital over the years, the company has generally demonstrated an ability to generate returns on its total capital investment, with the most recent years showing a commendable performance.