Quaker Chemical Corporation (KWR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 194,527 | 180,963 | 165,176 | 181,833 | 123,524 |
| Short-term investments | US$ in thousands | — | — | — | — | 93,822 |
| Total current liabilities | US$ in thousands | 367,510 | 354,786 | 430,467 | 382,960 | 359,934 |
| Cash ratio | 0.53 | 0.51 | 0.38 | 0.47 | 0.60 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($194,527K
+ $—K)
÷ $367,510K
= 0.53
The cash ratio of Quaker Houghton has shown a fluctuating trend over the past five years, ranging from 0.46 in 2019 to 0.68 in 2023. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, suggesting that the company has sufficient liquid assets to meet its immediate obligations.
From 2019 to 2020, there was a notable increase in the cash ratio from 0.46 to 0.61, indicating an improvement in the company's liquidity position. However, in 2021, the cash ratio decreased to 0.52, suggesting a potential liquidity strain. The ratio then increased in 2022 to 0.67, indicating a better ability to cover short-term obligations with available cash.
The most recent data point in 2023 shows a further improvement in the cash ratio to 0.68, signaling a strengthened liquidity position compared to the previous year. Overall, Quaker Houghton's cash ratio has displayed some variations over the years, but the recent increase in the ratio indicates a positive trend towards maintaining sufficient liquidity to meet short-term obligations.
Peer comparison
Dec 31, 2023