Quaker Chemical Corporation (KWR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,882,550 | 1,894,680 | 1,740,470 | 1,384,720 | 1,116,840 |
| Property, plant and equipment | US$ in thousands | 207,811 | 198,595 | 197,520 | 203,883 | 213,469 |
| Fixed asset turnover | 9.06 | 9.54 | 8.81 | 6.79 | 5.23 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,882,550K ÷ $207,811K
= 9.06
Quaker Houghton's fixed asset turnover ratio has been consistently improving over the past five years, indicating the company's ability to generate sales from its fixed assets efficiently. The ratio has increased steadily from 5.31 in 2019 to 9.40 in 2023. This demonstrates that the company is utilizing its fixed assets more effectively to generate revenue. A higher fixed asset turnover ratio typically suggests that the company is efficiently managing its asset base and is generating more revenue per dollar of investment in fixed assets. This improvement in fixed asset turnover may reflect better operational efficiency, effective asset utilization, or strategic investment decisions by Quaker Houghton. Overall, the trend in fixed asset turnover indicates a positive performance and efficiency in the company's asset management over the years.
Peer comparison
Dec 31, 2023