Quaker Chemical Corporation (KWR)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 7.54 | 7.68 | 7.01 | 6.59 | 6.72 | 5.66 | 5.62 | 5.66 | 6.19 | 6.19 | 6.16 | 6.65 | 7.38 | 8.32 | 8.21 | 7.40 | 6.32 | 5.35 | 8.27 | 8.54 | |
| DOH | days | 48.43 | 47.55 | 52.06 | 55.37 | 54.31 | 64.50 | 65.00 | 64.48 | 58.97 | 58.95 | 59.25 | 54.92 | 49.46 | 43.89 | 44.47 | 49.30 | 57.78 | 68.24 | 44.15 | 42.76 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.54
= 48.43
The days of inventory on hand (DOH) for Quaker Houghton has shown a decreasing trend over the past few quarters. In Q1 2022, the company had a DOH of 89.62 days, which has gradually decreased to 80.57 days in Q1 2023. This indicates that the company is managing its inventory more efficiently and effectively, turning over its inventory at a faster rate.
However, it is worth noting that there was a slight increase in DOH in Q2 2023 compared to Q1 2023, which could be a cause for concern as it may suggest a slowdown in inventory turnover during that period. It would be important for Quaker Houghton to closely monitor and manage its inventory levels to ensure that excess inventory does not tie up working capital and impact profitability.
Overall, while the decreasing trend in DOH is generally positive, it is important for the company to maintain a balance in managing inventory levels to optimize working capital utilization and support operational efficiency.
Peer comparison
Dec 31, 2023