World Kinect Corporation (WKC)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 201,400 | 280,200 | 299,000 | 274,100 | 260,700 | 228,400 | 176,100 | 157,400 | 146,700 | 125,400 | 198,400 | 175,600 | 210,400 | 272,500 | 246,600 | 317,100 | 315,200 | 303,800 | 293,200 | 274,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,943,000 | 1,968,300 | 1,959,100 | 2,008,300 | 1,984,900 | 1,939,700 | 1,915,700 | 1,941,400 | 1,912,700 | 1,919,700 | 1,946,200 | 1,939,500 | 1,909,300 | 1,916,000 | 1,815,000 | 1,846,400 | 1,890,400 | 1,842,100 | 1,799,400 | 1,840,300 |
| Return on total capital | 10.37% | 14.24% | 15.26% | 13.65% | 13.13% | 11.78% | 9.19% | 8.11% | 7.67% | 6.53% | 10.19% | 9.05% | 11.02% | 14.22% | 13.59% | 17.17% | 16.67% | 16.49% | 16.29% | 14.93% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $201,400K ÷ ($—K + $1,943,000K)
= 10.37%
World Kinect Corp's return on total capital has shown an increasing trend over the last year, from 5.50% in Q1 2022 to 11.25% in Q2 2023. This indicates an improvement in the company's ability to generate profits from its total invested capital. The consistent growth in return on total capital signifies effective capital utilization and operational efficiency. It is a positive sign for investors and stakeholders as it demonstrates the company's ability to generate returns on the capital invested in the business. The gradual increase in this ratio suggests that World Kinect Corp is becoming more efficient and profitable over time.