World Kinect Corporation (WKC)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 211,100 | 272,500 | 272,700 | 200,100 | 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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,948,700 | 2,044,400 | 2,032,300 | 1,952,000 | 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 |
| Return on total capital | 10.83% | 13.33% | 13.42% | 10.25% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $211,100K ÷ ($—K + $1,948,700K)
= 10.83%
World Kinect Corporation's return on total capital has shown some variability over the past few years. The ratio has ranged from a high of 17.17% in March 2020 to a low of 6.53% in September 2021.
Overall, the return on total capital has generally trended downwards from 2018 to 2021, with a noticeable decrease from 17.17% in March 2020 to 6.53% in September 2021. However, there has been a recovery since then, with the ratio gradually increasing from 6.53% in September 2021 to 13.33% in September 2024.
It is important for World Kinect Corporation to continue monitoring and improving its return on total capital to ensure efficient utilization of both debt and equity capital. A consistent focus on optimizing capital allocation and improving operational efficiency can help enhance shareholder value and financial performance in the long run.