World Kinect Corporation (WKC)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.80 | 4.11 | 3.11 | 2.36 | 3.17 |
The solvency ratios of World Kinect Corp indicate the company's ability to meet its long-term financial obligations.
The debt-to-assets ratio has shown a slight increase over the past five years, from 0.10 in 2019 to 0.12 in 2023. This ratio suggests that 12% of the company's total assets are financed by debt, indicating a relatively low level of financial risk.
The debt-to-capital ratio has fluctuated over the years but generally trended upwards, reaching 0.31 in 2023. This ratio indicates that 31% of the company's capital structure is made up of debt. While an increase in this ratio could signal increased financial risk, the current level is still within a reasonable range.
The debt-to-equity ratio has shown fluctuations as well, with an increase from 0.33 in 2019 to 0.46 in 2023. This ratio indicates that 46% of the company's equity is financed by debt. A higher debt-to-equity ratio signifies higher financial leverage and potential risk.
The financial leverage ratio has also varied over the years, reaching a peak of 4.11 in 2022 before declining to 3.80 in 2023. This ratio measures the company's total assets relative to its equity capital. A higher ratio indicates higher financial risk and dependency on debt financing.
Overall, World Kinect Corp's solvency ratios show that the company has been moderately conservative in its use of debt financing, with a stable but slightly increasing trend in recent years. However, the increasing debt levels reflected in the ratios, particularly the debt-to-equity ratio, suggest that the company may be taking on more financial risk. It would be advisable for stakeholders to closely monitor these ratios and the company's overall financial health.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 1.49 | 2.22 | 3.11 | 4.33 | 3.94 |
As the interest coverage ratios for World Kinect Corp are not available for the years ending December 31, 2019 to December 31, 2023 in the provided table, it is not possible to conduct a detailed analysis of this particular financial metric. Interest coverage ratio is a measure of a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a better ability to cover interest expenses from operating income.
To evaluate the financial health of World Kinect Corp more effectively, it is recommended to obtain the necessary financial data for the respective years and calculate the interest coverage ratios accordingly. This analysis would provide insight into the company's ability to meet its interest expenses and provide a clearer understanding of its financial leverage and risk profile.