Quaker Chemical Corporation (KWR)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,762,651 | 1,924,905 | 1,927,481 | 1,934,656 | 1,914,205 | 1,794,768 | 1,760,182 | 1,696,961 | 1,637,341 | 1,578,201 | 1,495,799 | 1,380,953 | 1,385,668 | 1,424,733 | 1,426,993 | 1,316,918 | 1,105,135 | 932,730 | 781,146 | 793,380 |
| Inventory | US$ in thousands | 233,857 | 250,770 | 274,940 | 293,494 | 284,848 | 317,140 | 313,442 | 299,795 | 264,531 | 254,894 | 242,809 | 207,778 | 187,764 | 171,327 | 173,867 | 177,868 | 174,950 | 174,386 | 94,485 | 92,947 |
| Inventory turnover | 7.54 | 7.68 | 7.01 | 6.59 | 6.72 | 5.66 | 5.62 | 5.66 | 6.19 | 6.19 | 6.16 | 6.65 | 7.38 | 8.32 | 8.21 | 7.40 | 6.32 | 5.35 | 8.27 | 8.54 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,762,651K ÷ $233,857K
= 7.54
Quaker Houghton's inventory turnover has been relatively stable over the past eight quarters, ranging from 4.07 to 5.34 times per year. The company's inventory turnover has shown a generally increasing trend, reaching a peak of 5.34 in Q4 2023. This indicates that the company is managing its inventory more efficiently, selling and replenishing its stock at a faster rate compared to previous quarters. A higher inventory turnover ratio generally signifies better inventory management and liquidity, as it indicates that products are not sitting idle for extended periods. Quaker Houghton's consistent improvement in inventory turnover suggests effective inventory management practices and could lead to improved cash flow and profitability over time.
Peer comparison
Dec 31, 2023
Dec 31, 2023