Quaker Chemical Corporation (KWR)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,882,612 | 1,892,565 | 1,899,214 | 1,897,711 | 1,880,954 | 1,865,850 | 1,827,228 | 1,779,037 | 1,740,473 | 1,678,776 | 1,593,852 | 1,442,077 | 1,384,720 | 1,398,527 | 1,359,589 | 1,286,904 | 1,125,665 | 945,852 | 846,586 | 862,335 |
| Total current assets | US$ in thousands | 927,889 | 966,311 | 984,001 | 1,029,300 | 994,137 | 984,703 | 1,045,820 | 987,659 | 920,254 | 893,196 | 867,905 | 831,041 | 792,727 | 718,564 | 849,238 | 895,228 | 715,972 | 724,562 | 412,179 | 391,313 |
| Total current liabilities | US$ in thousands | 367,510 | 352,107 | 346,538 | 369,412 | 354,786 | 365,731 | 400,725 | 452,549 | 430,467 | 409,959 | 400,434 | 396,435 | 382,960 | 337,140 | 282,691 | 340,587 | 359,934 | 345,760 | 153,188 | 147,508 |
| Working capital turnover | 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 | 3.16 | 2.50 | 3.27 | 3.54 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,882,612K ÷ ($927,889K – $367,510K)
= 3.36
Quaker Houghton's working capital turnover ratio has fluctuated over the past eight quarters, ranging from a low of 2.89 in Q2 2022 to a high of 3.49 in Q4 2023. This ratio indicates the company's efficiency in utilizing its working capital to generate revenue. A higher ratio suggests that the company is effectively managing its working capital to support sales growth, while a lower ratio may indicate inefficiencies or excess tied-up capital.
The upward trend from Q1 2023 to Q4 2023 is a positive sign, as it shows an improvement in the company's ability to convert its working capital into sales. However, it is important to consider the absolute level of the ratio and compare it to industry peers to gain a clearer understanding of Quaker Houghton's performance in this area. Overall, the consistent monitoring of the working capital turnover ratio can help stakeholders assess the company's liquidity management and operational efficiency.
Peer comparison
Dec 31, 2023