World Kinect Corporation (WKC)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,731,800 | 6,984,600 | 7,189,200 | 7,174,400 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,948,700 | 2,044,400 | 2,032,300 | 1,952,000 | 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 |
| Financial leverage ratio | 3.45 | 3.42 | 3.54 | 3.68 | 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 |
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 been fluctuating over the past few years. The ratio measures the extent to which the company relies on debt financing rather than equity to support its operations and growth.
From March 31, 2020, to December 31, 2021, the financial leverage ratio saw a gradual increase from 2.98 to 3.11, indicating a higher reliance on debt during this period. This increase could suggest that the company was taking on more debt to fuel its expansion or address financial needs.
However, from March 31, 2022, to December 31, 2024, the financial leverage ratio remained relatively stable, fluctuating within a narrower range between 3.42 and 4.59. This stability may indicate that the company's debt levels were being managed more consistently, possibly reflecting a more cautious approach to leveraging the business.
Overall, World Kinect Corporation's financial leverage ratio trend suggests a period of increasing reliance on debt followed by a more stable phase. It would be important for stakeholders to monitor this ratio closely to ensure that the company's debt levels are sustainable and in line with its overall financial health and growth objectives.