World Kinect Corporation (WKC)

The solvency ratios of World Kinect Corporation indicate a strong financial position with minimal reliance on debt funding. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have consistently shown a value of 0.00 from 2020 to 2024. This suggests that the company's assets are primarily financed through equity rather than debt, which is a positive indicator of financial stability.

However, the financial leverage ratio has varied slightly over the years but generally remained manageable. The ratio increased from 2.36 in 2020 to 4.11 in 2022 but decreased to 3.45 by the end of 2024. Despite fluctuations, the financial leverage ratio indicates the company's ability to meet its financial obligations and manage its debt levels effectively.

Overall, World Kinect Corporation's solvency ratios reflect a conservative approach to capital structure and a healthy balance between equity and debt financing, contributing to a stable and sustainable financial position.

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Coverage ratios

World Kinect Corporation's interest coverage has shown a declining trend over the past five years, decreasing from 4.33 in December 31, 2020, to 1.82 in December 31, 2024. This indicates that the company's ability to cover its interest expenses with its earnings has weakened over this period.

A higher interest coverage ratio is generally preferred as it suggests that the company is more capable of meeting its interest obligations. In contrast, a declining interest coverage ratio may raise concerns about the company's financial health and ability to service its debt.

The decreasing trend in World Kinect Corporation's interest coverage may indicate potential financial difficulties, as the company may be struggling to generate sufficient earnings to cover its interest expenses. Investors and creditors should closely monitor this metric to assess the company's financial stability and debt repayment capacity.