World Kinect Corporation (WKC)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,375,300 | 7,483,100 | 6,961,900 | 7,485,800 | 8,164,600 | 7,970,300 | 8,795,700 | 7,968,000 | 5,942,400 | 5,544,300 | 5,249,800 | 4,925,400 | 4,500,300 | 4,392,300 | 4,881,000 | 5,498,900 | 5,992,400 | 5,797,500 | 5,751,200 | 5,733,200 |
| Total stockholders’ equity | US$ in thousands | 1,943,000 | 1,968,300 | 1,959,100 | 2,008,300 | 1,984,900 | 1,939,700 | 1,915,700 | 1,941,400 | 1,912,700 | 1,919,700 | 1,946,200 | 1,939,500 | 1,909,300 | 1,916,000 | 1,815,000 | 1,846,400 | 1,890,400 | 1,842,100 | 1,799,400 | 1,840,300 |
| Financial leverage ratio | 3.80 | 3.80 | 3.55 | 3.73 | 4.11 | 4.11 | 4.59 | 4.10 | 3.11 | 2.89 | 2.70 | 2.54 | 2.36 | 2.29 | 2.69 | 2.98 | 3.17 | 3.15 | 3.20 | 3.12 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,375,300K ÷ $1,943,000K
= 3.80
The financial leverage ratio of World Kinect Corp has been relatively stable over the past year, ranging from 3.55 to 4.11. This ratio indicates that the company relies heavily on debt financing to fund its operations and growth, as a higher ratio suggests higher levels of debt relative to equity.
A high financial leverage ratio can increase the company's risk of financial distress, especially during economic downturns or when facing challenges in generating sufficient cash flows to meet debt obligations. On the other hand, a high leverage ratio could also potentially amplify returns for shareholders during periods of strong performance.
It is important for investors and stakeholders to closely monitor World Kinect Corp's financial leverage ratio, as changes in this ratio can provide insights into the company's financial health, risk profile, and overall capital structure.