World Kinect Corporation (WKC)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,943,000K
= 0.00
The debt-to-equity ratio of World Kinect Corp has shown a fluctuating trend over the past five years. In 2023, the ratio increased to 0.46 from 0.43 in 2022, indicating that the company's level of debt in relation to its equity has slightly increased. This could suggest that World Kinect Corp is relying more on debt financing compared to equity financing.
When comparing 2021 and 2020, the ratio remained constant at 0.27, indicating a stable financial structure where debt and equity are balanced. However, there was a noticeable decrease from 0.33 in 2019 to 0.27 in 2020, suggesting a reduction in the company's reliance on debt financing or an increase in equity relative to debt during that period.
Overall, World Kinect Corp's debt-to-equity ratio has varied over the years, with the recent increase potentially signaling a shift towards more debt in its capital structure. It is essential for the company to monitor and manage its debt levels effectively to maintain a healthy balance between debt and equity financing.