Quaker Chemical Corporation (KWR)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,762,650 | 1,914,200 | 1,637,340 | 1,385,670 | 1,105,140 |
| Inventory | US$ in thousands | 233,857 | 284,848 | 264,531 | 187,764 | 174,950 |
| Inventory turnover | 7.54 | 6.72 | 6.19 | 7.38 | 6.32 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,762,650K ÷ $233,857K
= 7.54
Quaker Houghton's inventory turnover has shown a generally positive trend over the past five years. The ratio has increased from 4.24 in 2019 to 5.34 in 2023, indicating that the company is generating more revenue from its inventory. This implies that Quaker Houghton is managing its inventory more efficiently by effectively selling products and restocking inventory at an increasing pace. A higher inventory turnover ratio suggests that the company is able to quickly sell and replenish its stock, which may lead to lower carrying costs and potentially higher profitability. Overall, the upward trend in inventory turnover is a positive signal of Quaker Houghton's inventory management effectiveness and operational efficiency.
Peer comparison
Dec 31, 2023