Quaker Chemical Corporation (KWR)

Cash ratio

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
Cash and cash equivalents US$ in thousands 194,527 198,358 189,405 189,872 180,963 138,891 202,348 161,552 165,176 141,393 145,610 163,455 181,833 155,750 322,497 316,437 123,524 128,161 86,355 71,960
Short-term investments US$ in thousands 66,760 98,013 84,089 93,822
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
Cash ratio 0.53 0.56 0.55 0.51 0.51 0.56 0.50 0.36 0.38 0.34 0.61 0.41 0.47 0.46 1.14 1.18 0.60 0.37 0.56 0.49

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 some variability over the past eight quarters. The cash ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, has ranged from 0.51 to 0.76 during this period.

In general, a higher cash ratio indicates a stronger ability to cover short-term obligations, as it means the company has more cash on hand relative to its current liabilities. Quaker Houghton's cash ratio has generally trended upwards since Q1 2022, reaching a peak of 0.76 in Q3 2023 before slightly declining to 0.68 in Q4 2023.

While the company's cash ratio has fluctuated, it has consistently remained above 0.5, indicating that Quaker Houghton has had a relatively strong ability to meet its short-term obligations with its available cash and cash equivalents throughout the analyzed period. Investors and stakeholders may find this stability in the cash ratio reassuring, as it suggests that the company has sufficient liquidity to weather any short-term financial challenges.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash ratio
Quaker Chemical Corporation
KWR
0.53
Valvoline Inc
VVV
1.70