Quaker Chemical Corporation (KWR)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 49.72 | 53.48 | 51.55 | 50.85 | 48.43 | 47.55 | 52.06 | 55.37 | 54.31 | 64.50 | 65.00 | 64.48 | 58.97 | 58.95 | 59.25 | 54.92 | 49.46 | 43.89 | 44.47 | 49.30 |
| Days of sales outstanding (DSO) | days | 79.43 | 85.37 | 84.47 | 86.45 | 86.27 | 86.10 | 87.30 | 92.85 | 91.76 | 90.36 | 92.96 | 94.06 | 90.32 | 94.28 | 95.87 | 104.16 | 98.31 | 88.44 | 80.55 | 101.51 |
| Number of days of payables | days | 43.31 | 41.87 | 39.95 | 40.42 | 38.27 | 36.04 | 36.70 | 40.87 | 36.99 | 42.57 | 51.08 | 54.61 | 50.53 | 50.79 | 53.59 | 56.57 | 50.53 | 42.42 | 33.34 | 49.33 |
| Cash conversion cycle | days | 85.84 | 96.99 | 96.06 | 96.87 | 96.42 | 97.61 | 102.66 | 107.35 | 109.09 | 112.28 | 106.87 | 103.93 | 98.76 | 102.44 | 101.53 | 102.51 | 97.24 | 89.91 | 91.68 | 101.48 |
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 years. The company's cash conversion cycle measures the time it takes for the company to convert its investments in raw materials into cash receipts from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a high of 112.28 days to a low of 85.84 days. Generally, a shorter cash conversion cycle is favorable as it indicates the company is efficient in managing its working capital.
It's worth noting that the cash conversion cycle increased towards the end of the period. Starting from March 31, 2024, the cycle decreased slightly, indicating an improvement in the company's efficiency in managing its cash flows.
Overall, Quaker Chemical Corporation's cash conversion cycle analysis suggests that the company may have experienced challenges in converting raw materials into cash efficiently at times, and the company should continue to focus on strategies to optimize its working capital management to enhance its financial performance.
Peer comparison
Dec 31, 2024