World Kinect Corporation (WKC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,731,800 | 7,375,300 | 8,164,600 | 5,942,400 | 4,500,300 |
| Total stockholders’ equity | US$ in thousands | 1,948,700 | 1,943,000 | 1,984,900 | 1,912,700 | 1,909,300 |
| Financial leverage ratio | 3.45 | 3.80 | 4.11 | 3.11 | 2.36 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,731,800K ÷ $1,948,700K
= 3.45
The financial leverage ratio of World Kinect Corporation has shown an increasing trend over the past five years, indicating a growing reliance on debt financing to support its operations and expansion. The ratio has increased from 2.36 in 2020 to 3.45 in 2024, with a peak of 4.11 in 2022. This indicates that the company's debt levels relative to its equity have been on the rise, which may potentially increase the company's financial risk and interest obligations. It is important for stakeholders to monitor this trend closely to ensure the company maintains a healthy balance between debt and equity to sustain its financial health and stability.