Quaker Chemical Corporation (KWR)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,882,550 | 1,894,680 | 1,740,470 | 1,384,720 | 1,116,840 |
| Total assets | US$ in thousands | 2,714,210 | 2,821,620 | 2,955,760 | 2,891,830 | 2,850,320 |
| Total asset turnover | 0.69 | 0.67 | 0.59 | 0.48 | 0.39 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,882,550K ÷ $2,714,210K
= 0.69
Quaker Houghton's total asset turnover has shown a positive trend over the past five years, increasing from 0.40 in 2019 to 0.72 in 2023. This indicates that the company has become more efficient in generating sales revenue relative to its total assets during this period.
A total asset turnover ratio of less than 1 means the company is generating less revenue per dollar of assets, which could indicate underutilization of assets or lower sales volume. However, the increasing trend signifies that Quaker Houghton has been able to improve its asset utilization and generate more sales from its total assets.
Overall, the increasing total asset turnover ratio suggests that Quaker Houghton has been effectively managing its assets to generate sales revenue, which is a positive indicator of operational efficiency and financial performance.
Peer comparison
Dec 31, 2023