Quaker Chemical Corporation (KWR)
Payables 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 |
| Payables | US$ in thousands | 184,813 | 193,983 | 226,656 | 191,821 | 164,101 |
| Payables turnover | 9.54 | 9.87 | 7.22 | 7.22 | 6.73 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,762,650K ÷ $184,813K
= 9.54
Quaker Houghton's payables turnover has shown a generally increasing trend over the past five years. The ratio increased from 4.52 in 2019 to 6.75 in 2023. This indicates that the company is managing its accounts payable more efficiently, taking less time to pay off its suppliers.
A higher payables turnover ratio could suggest favorable payment terms negotiated with suppliers or better cash management practices. It may also indicate strong vendor relationships or improvements in inventory management leading to quicker turnover of goods.
Overall, the increasing trend in payables turnover for Quaker Houghton is a positive signal, reflecting potentially enhanced liquidity and working capital management within the company.
Peer comparison
Dec 31, 2023