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