Quaker Chemical Corporation (KWR)
Working capital 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 |
| Total current assets | US$ in thousands | 876,417 | 927,889 | 994,137 | 920,254 | 792,727 |
| Total current liabilities | US$ in thousands | 379,768 | 367,510 | 354,786 | 430,467 | 382,960 |
| Working capital turnover | 3.70 | 3.36 | 2.96 | 3.55 | 3.38 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,838,720K ÷ ($876,417K – $379,768K)
= 3.70
Working capital turnover is a financial ratio that measures how efficiently a company utilizes its working capital to generate sales revenue. Looking at the data provided for Quaker Chemical Corporation, the working capital turnover has shown some fluctuations over the years.
- As of December 31, 2020, the working capital turnover was 3.38, indicating that for every dollar of working capital, the company generated $3.38 in sales revenue.
- The ratio increased to 3.55 by the end of December 31, 2021, suggesting an improvement in the efficiency of working capital utilization during this period.
- However, there was a slight decline in the working capital turnover to 2.96 by December 31, 2022. This decrease may indicate that the company was not as effective in converting its working capital into sales revenue during this particular year.
- The ratio then improved to 3.36 by December 31, 2023, showing a recovery in the efficiency of working capital utilization.
- By December 31, 2024, the working capital turnover further increased to 3.70, reaching a relatively higher level compared to the previous years. This indicates that Quaker Chemical Corporation was able to generate more sales revenue for each dollar of working capital invested.
Overall, the trend in working capital turnover for Quaker Chemical Corporation demonstrates some fluctuations but with an overall improvement in the efficiency of working capital utilization over the years, especially towards the later years of the data provided.
Peer comparison
Dec 31, 2024