World Kinect Corporation (WKC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
World Kinect Corporation's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been consistently at 0.00 over the multiple periods analyzed, suggesting that the company does not rely heavily on debt to finance its operations.
The Financial leverage ratio, which measures the extent to which the company uses debt to finance its operations, shows some fluctuation over time. It started at 2.98 on March 31, 2020, increased to a peak of 4.59 on June 30, 2022, and then decreased to 3.45 by December 31, 2024. While the ratio has increased over the years, it is still within a reasonable range and does not pose a significant risk to the company's solvency.
Overall, World Kinect Corporation's solvency ratios demonstrate a conservative approach to debt management, indicating a stable and financially sound position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.82 | 2.23 | 2.18 | 1.53 | 1.49 | 2.00 | 2.08 | 2.01 | 2.22 | 2.49 | 2.54 | 2.98 | 3.11 | 2.67 | 4.49 | 4.04 | 4.33 | 5.14 | 3.81 | 4.18 |
World Kinect Corporation's interest coverage ratio has shown fluctuations over the past few years. The interest coverage ratio is a measure of the company's ability to pay interest on outstanding debt from its operating income.
From March 31, 2020, to June 30, 2021, the interest coverage ratio ranged between 3.81 and 5.14, indicating that the company was comfortably covering its interest expenses with its operating income during this period.
However, starting from September 30, 2021, the interest coverage ratio began to decline, reaching its lowest point of 1.49 on December 31, 2023. This downward trend suggests that the company's ability to cover its interest payments deteriorated, potentially indicating financial distress or decreased profitability.
The interest coverage ratio improved slightly in the following periods but remained below earlier levels, indicating that the company may still face challenges in meeting its interest obligations.
Overall, World Kinect Corporation should closely monitor its interest coverage ratio and take steps to improve its profitability and cash flow to ensure it can meet its debt obligations effectively in the future.