Quaker Chemical Corporation (KWR)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,838,720 | 1,882,550 | 1,894,680 | 1,740,470 | 1,384,720 |
| Property, plant and equipment | US$ in thousands | 229,532 | 207,811 | 198,595 | 197,520 | 203,883 |
| Fixed asset turnover | 8.01 | 9.06 | 9.54 | 8.81 | 6.79 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,838,720K ÷ $229,532K
= 8.01
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales from its investment in fixed assets. The higher the ratio, the more efficiently the company is using its fixed assets to generate revenue.
Based on the data provided for Quaker Chemical Corporation, the fixed asset turnover ratio has shown a positive trend over the past five years. It increased from 6.79 in December 2020 to 8.01 in December 2024. This indicates that the company has been able to generate more sales relative to its investment in fixed assets over this period.
The peak in the fixed asset turnover ratio was observed in December 2022 at 9.54, suggesting that Quaker Chemical Corporation was particularly efficient in utilizing its fixed assets to generate revenue that year.
However, there was a slight dip in the ratio in December 2023 to 9.06, which may indicate a temporary decrease in the efficiency of utilizing fixed assets to generate sales. It would be important to further investigate the reasons behind this decline to ensure it is not indicative of any underlying operational issues.
Overall, the increasing trend in the fixed asset turnover ratio for Quaker Chemical Corporation signifies improved efficiency in utilizing fixed assets to drive sales growth, which can be a positive indicator of the company's operational performance and profitability.
Peer comparison
Dec 31, 2024