Quaker Chemical Corporation (KWR)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 49.72 | 48.43 | 54.31 | 58.97 | 49.46 |
| Days of sales outstanding (DSO) | days | 79.43 | 86.27 | 91.10 | 90.32 | 98.31 |
| Number of days of payables | days | 43.31 | 38.27 | 36.99 | 50.53 | 50.53 |
| Cash conversion cycle | days | 85.84 | 96.43 | 108.43 | 98.76 | 97.24 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 49.72 + 79.43 – 43.31
= 85.84
Quaker Chemical Corporation's cash conversion cycle has exhibited fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle stood at 97.24 days, showing a slight increase by December 31, 2021, to 98.76 days. However, there was a significant rise in the cash conversion cycle to 108.43 days by December 31, 2022. The trend reversed in the subsequent year, with a decrease to 96.43 days by December 31, 2023. Notably, by December 31, 2024, the cash conversion cycle experienced a notable decline to 85.84 days.
Overall, the cash conversion cycle trend indicates variability in Quaker Chemical Corporation's efficiency in converting inputs into cash flows over the five-year period. It is essential for the company to monitor and manage this cycle effectively to optimize working capital management and enhance financial performance.
Peer comparison
Dec 31, 2024