Quaker Chemical Corporation (KWR)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.60 | 4.28 | 4.32 | 4.22 | 4.23 | 4.24 | 4.18 | 3.93 | 3.98 | 4.04 | 3.93 | 3.88 | 4.04 | 3.87 | 3.81 | 3.50 | 3.71 | 4.13 | 4.53 | 3.60 | |
| DSO | days | 79.43 | 85.37 | 84.47 | 86.45 | 86.27 | 86.10 | 87.30 | 92.85 | 91.76 | 90.36 | 92.96 | 94.06 | 90.32 | 94.28 | 95.87 | 104.16 | 98.31 | 88.44 | 80.55 | 101.51 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.60
= 79.43
Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days it takes for a company to collect payment from its customers after a sale is made. For Quaker Chemical Corporation, the DSO has shown some fluctuations over the past few years. From March 31, 2020, to December 31, 2024, the DSO ranged from a high of 104.16 days to a low of 79.43 days.
Analyzing the trend, we can observe that the DSO peaked in the first quarter of 2021 but decreased gradually over the following quarters. This reduction indicates an improvement in the company's efficiency of collecting receivables from customers. A lower DSO generally suggests that the company is managing its accounts receivable more effectively and converting sales into cash more quickly.
However, it's important to note that the DSO in the last few quarters has remained relatively stable around the 80-90 days range. While this may indicate a consistent collection process, it's essential for Quaker Chemical Corporation to continue monitoring its DSO and strive to keep it at an optimal level to ensure healthy cash flow and liquidity. A higher DSO could signify potential issues with credit policies, customer payment delays, or inefficiencies in the collections process that may need attention from management.
Peer comparison
Dec 31, 2024