Quaker Chemical Corporation (KWR)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 188,880 | 194,527 | 180,963 | 165,176 | 181,833 |
| Short-term investments | US$ in thousands | — | 3,443 | — | — | — |
| Total current liabilities | US$ in thousands | 379,768 | 367,510 | 354,786 | 430,467 | 382,960 |
| Cash ratio | 0.50 | 0.54 | 0.51 | 0.38 | 0.47 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($188,880K
+ $—K)
÷ $379,768K
= 0.50
Quaker Chemical Corporation's cash ratio has shown fluctuations over the past five years. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, stood at 0.47 as of December 31, 2020. It decreased to 0.38 by December 31, 2021, indicating a reduced ability to cover short-term obligations with available cash.
However, the company's cash ratio improved in the subsequent years, reaching 0.51 by December 31, 2022, 0.54 by December 31, 2023, and then slightly dropping to 0.50 by December 31, 2024. These increases suggest a strengthened liquidity position, with the company having more cash and cash equivalents to meet its short-term obligations.
Overall, Quaker Chemical Corporation's cash ratio trended positively from 2021 to 2024, reflecting an enhanced ability to cover short-term liabilities with available cash resources. This improvement signals improved liquidity management and suggests that the company may be better positioned to navigate financial challenges and seize opportunities in the future.
Peer comparison
Dec 31, 2024