Quaker Chemical Corporation (KWR)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,669,880 | 1,762,650 | 1,914,200 | 1,637,340 | 1,385,670 |
| Payables | US$ in thousands | 198,137 | 184,813 | 193,983 | 226,656 | 191,821 |
| Payables turnover | 8.43 | 9.54 | 9.87 | 7.22 | 7.22 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,669,880K ÷ $198,137K
= 8.43
Quaker Chemical Corporation's payables turnover ratio has shown a consistent trend over the years, indicating the company's efficiency in managing its accounts payable. From a value of 7.22 in both December 31, 2020 and December 31, 2021, the ratio increased to 9.87 by December 31, 2022, highlighting a notable improvement in the speed at which the company pays off its suppliers. However, there was a slight decline to 9.54 by December 31, 2023, and a further decrease to 8.43 by December 31, 2024, although the ratio remained relatively high.
Overall, Quaker Chemical Corporation has maintained a healthy payables turnover ratio, suggesting effective management of its trade credit, timely payments to suppliers, and potentially favorable relationships with vendors. The fluctuations in the ratio in recent years may warrant further investigation to understand the underlying reasons for the changes.
Peer comparison
Dec 31, 2024