World Kinect Corporation (WKC)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 211,000 | 201,400 | 260,700 | 146,700 | 210,300 |
| Interest expense | US$ in thousands | 116,000 | 135,500 | 117,400 | 47,200 | 48,600 |
| Interest coverage | 1.82 | 1.49 | 2.22 | 3.11 | 4.33 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $211,000K ÷ $116,000K
= 1.82
World Kinect Corporation's interest coverage has been on a downward trend over the past five years, dropping from 4.33 in December 2020 to 1.82 in December 2024. This indicates that the company's ability to cover its interest payments with its earnings has weakened over time. The declining trend suggests that World Kinect Corporation may be facing financial challenges in meeting its interest obligations from its operating profits. It is essential for the company to closely monitor and manage its interest coverage ratio to ensure financial stability and sustainability in the long term.