Quaker Chemical Corporation (KWR)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 7.34 6.82 7.08 7.18 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
Receivables turnover 4.60 4.28 4.32 4.22 4.23 4.24 4.18 3.93 3.98 4.04 3.93 3.88 4.04 3.87 3.81 3.50 3.71 4.13 4.53 3.60
Payables turnover 8.43 8.72 9.14 9.03 9.54 10.13 9.95 8.93 9.87 8.57 7.15 6.68 7.22 7.19 6.81 6.45 7.22 8.60 10.95 7.40
Working capital turnover 3.70 3.17 3.22 3.19 3.36 3.08 2.98 2.88 2.94 3.01 2.83 3.32 3.55 3.47 3.41 3.32 3.38 3.67 2.40 2.32

Quaker Chemical Corporation's inventory turnover ratio has shown a gradual decline from 7.40 on March 31, 2020, to 7.34 on December 31, 2024. This implies that the company's ability to sell its inventory has decreased slightly over the years.

On the other hand, the receivables turnover ratio has been relatively stable, ranging from 3.50 to 4.60 during the same period. This suggests that Quaker Chemical has been efficient in collecting its receivables from customers.

The payables turnover ratio has shown some fluctuations, with an increasing trend from 7.40 on March 31, 2020, to 8.43 on December 31, 2024. This indicates that the company is taking more time to pay its suppliers over the years.

Furthermore, the working capital turnover ratio has also shown some variability, with peaks and troughs throughout the years. The ratio ranged from 2.32 to 3.70, indicating the company's ability to generate sales relative to its working capital levels.

Overall, while Quaker Chemical Corporation has displayed stable receivables turnover, the trends in inventory turnover, payables turnover, and working capital turnover suggest potential areas for further analysis to optimize the company's operational efficiency.

Average number of days

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 49.72 53.48 51.55 50.85 48.43 47.55 52.06 55.37 54.31 64.50 65.00 64.48 58.97 58.95 59.25 54.92 49.46 43.89 44.47 49.30
Days of sales outstanding (DSO) days 79.43 85.37 84.47 86.45 86.27 86.10 87.30 92.85 91.76 90.36 92.96 94.06 90.32 94.28 95.87 104.16 98.31 88.44 80.55 101.51
Number of days of payables days 43.31 41.87 39.95 40.42 38.27 36.04 36.70 40.87 36.99 42.57 51.08 54.61 50.53 50.79 53.59 56.57 50.53 42.42 33.34 49.33

Quaker Chemical Corporation's activity ratios indicate how efficiently the company manages its operations.

1. Days of Inventory on Hand (DOH): The trend in Quaker Chemical Corporation's DOH has been slightly fluctuating over the years, ranging from around 44 to 65 days. A decrease in the DOH suggests that the company is selling inventory faster or managing it more efficiently. However, an increase in DOH could indicate overstocking or slowing sales.

2. Days of Sales Outstanding (DSO): Quaker Chemical Corporation's DSO has shown a somewhat stable trend over the years, with values ranging from around 80 to 104 days. A lower DSO is generally favorable as it means the company is collecting payments from customers more quickly. A higher DSO could indicate potential issues with credit policies or difficulties in collecting receivables.

3. Number of Days of Payables: The number of days of payables for Quaker Chemical Corporation has been relatively stable but has shown a decreasing trend from around 49 to 43 days. A decrease in this ratio could suggest that the company is paying its suppliers more quickly, which could impact cash flow. Conversely, a higher number of days of payables may indicate better cash management.

Overall, monitoring and analyzing these activity ratios help in assessing how effectively Quaker Chemical Corporation is managing its inventory, receivables, and payables, key components of its operational efficiency and financial performance.

Long-term

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Fixed asset turnover 8.01 8.38 9.12 9.19 9.06 9.63 9.28 9.34 9.47 9.91 9.49 9.03 8.81 8.80 8.20 7.37 6.79 7.44 7.22 6.37
Total asset turnover 0.70 0.66 0.69 0.68 0.69 0.69 0.68 0.66 0.67 0.66 0.62 0.59 0.59 0.57 0.54 0.50 0.48 0.51 0.47 0.44

Quaker Chemical Corporation's fixed asset turnover ratio has shown an increasing trend over the years, indicating that the company has been more efficient in generating sales revenue from its investment in fixed assets. The ratio increased from 6.37 in March 2020 to 9.06 in December 2023, with a slight dip to 8.01 in December 2024. This suggests that Quaker Chemical has been effectively utilizing its fixed assets to support its operations and drive revenue growth.

On the other hand, the total asset turnover ratio of Quaker Chemical Corporation has also been on an upward trajectory, reflecting the company's ability to generate sales from its total assets. The ratio improved from 0.44 in March 2020 to 0.70 in December 2024, with fluctuations in between. This signifies that Quaker Chemical has been utilizing its total assets efficiently to drive revenue generation and overall business performance.

Overall, the increasing trends in both fixed asset turnover and total asset turnover ratios indicate that Quaker Chemical Corporation has been effectively managing and utilizing its assets to drive revenue growth and enhance operational efficiency over the analyzed period.