Quaker Chemical Corporation (KWR)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,838,720 | 1,882,550 | 1,894,680 | 1,740,470 | 1,384,720 |
| Receivables | US$ in thousands | 400,126 | 444,950 | 472,888 | 430,676 | 372,974 |
| Receivables turnover | 4.60 | 4.23 | 4.01 | 4.04 | 3.71 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,838,720K ÷ $400,126K
= 4.60
The receivables turnover ratio of Quaker Chemical Corporation has shown a consistent increasing trend over the past five years, from 3.71 in 2020 to 4.60 in 2024. This indicates that the company has been able to more efficiently collect payments from its customers over time. A higher receivables turnover ratio suggests that the company is effectively managing its accounts receivable by converting them into cash more quickly.
The improvement in the receivables turnover ratio reflects a more efficient credit and collection policy, which can lead to better cash flows and reduced risk of bad debts. It also signifies that Quaker Chemical Corporation has been successful in managing credit risks and maintaining good relationships with its customers.
Overall, the increasing trend in the receivables turnover ratio is a positive signal for the company's liquidity and operational efficiency. However, it is essential to continue monitoring this ratio to ensure that the company maintains its effectiveness in collecting receivables in a timely manner.
Peer comparison
Dec 31, 2024