World Kinect Corporation (WKC)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,943,000 | 1,984,900 | 1,912,700 | 1,909,300 | 1,890,400 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,943,000K)
= 0.00
World Kinect Corp's debt-to-capital ratio has shown some fluctuations over the past five years. In 2023, the ratio stands at 0.31, slightly higher compared to the previous year's 0.30. This suggests that the company's level of debt relative to its total capital has increased slightly. However, when looking at a longer-term trend, the current ratio is still higher than two years ago, where it was at 0.21.
The gradual increase in the debt-to-capital ratio over the last three years indicates that World Kinect Corp may be relying more on debt financing as a source of capital compared to equity financing. This could be a strategic decision to fund growth opportunities, invest in new projects, or manage cash flows. However, it also implies a higher level of financial risk as the company is becoming more leveraged.
It would be important for stakeholders and investors to monitor this trend closely to ensure that the company's debt levels remain sustainable and in line with its overall financial health and strategic objectives. Additionally, a higher debt-to-capital ratio may impact the company's credit ratings and borrowing costs in the long run.