Quaker Chemical Corporation (KWR)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.60 | 4.23 | 4.01 | 4.04 | 3.71 | |
| DSO | days | 79.43 | 86.27 | 91.10 | 90.32 | 98.31 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.60
= 79.43
Quaker Chemical Corporation's days of sales outstanding (DSO) have shown a favorable trend from 2020 to 2024, indicating efficiency in collecting receivables. The DSO has decreased from 98.31 days in 2020 to 79.43 days in 2024. This suggests that the company has been able to convert its accounts receivable into cash more quickly over the years, which is a positive sign of effective credit management and liquidity. The decreasing trend in DSO reflects Quaker Chemical Corporation's ability to maintain a healthy cash flow position by efficiently managing its receivables. It also indicates that the company has been successful in maintaining strong customer relationships while promptly collecting payments. Overall, the declining DSO trend is a positive indicator of the company's financial health and operational efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2024