Quaker Chemical Corporation (KWR)

Liquidity ratios

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
Current ratio 2.31 2.54 2.63 2.66 2.52 2.74 2.84 2.79 2.80 2.69 2.61 2.18 2.14 2.18 2.17 2.10 2.07 2.13 3.00 2.63
Quick ratio 1.55 1.71 1.75 1.82 1.74 1.83 1.86 1.82 1.84 1.83 1.67 1.37 1.38 1.40 1.65 1.45 1.45 1.47 2.20 2.23
Cash ratio 0.50 0.57 0.54 0.56 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

Quaker Chemical Corporation has maintained a relatively stable current ratio over the past five years, ranging between 2.07 and 2.84. This indicates that the company has a sufficient level of current assets to cover its short-term liabilities. The current ratio improved from 2.07 in December 2020 to 2.84 in June 2023 before slightly decreasing to 2.52 by December 2023.

In terms of the quick ratio, Quaker Chemical Corporation has shown a similar trend with values fluctuating between 1.38 and 1.86 over the same period. The company's quick ratio increased from 1.38 in December 2021 to 1.86 in June 2023, suggesting a stronger ability to meet short-term obligations without relying on inventory reserves. However, it dropped to 1.55 by December 2024.

Looking at the cash ratio, we see that Quaker Chemical Corporation's ability to cover its current liabilities with cash and cash equivalents has varied between 0.34 and 0.61 during the period under review. The cash ratio improved from 0.34 in September 2021 to 0.61 in June 2021, indicating better liquidity in the short term. However, it has fluctuated since then, reaching 0.50 by December 2024.

Overall, the liquidity ratios of Quaker Chemical Corporation suggest that the company has maintained a strong position in terms of its ability to meet short-term obligations, with reasonable levels of current assets and cash reserves. It is essential for the company to continue monitoring and managing its liquidity carefully to ensure financial stability and operational efficiency.

Additional liquidity measure

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
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

The cash conversion cycle of Quaker Chemical Corporation has shown fluctuations over the periods provided. The average cash conversion cycle has been around 100 days, indicating that the company takes, on average, about 100 days to convert its investments in raw materials into cash receipts from sales.

In the recent periods, there has been a gradual decrease in the cash conversion cycle, reaching its lowest point of 85.84 days as of December 31, 2024. This implies that Quaker Chemical has been more efficient in managing its cash flows, inventory, and receivables, resulting in a shorter time to convert its resources into cash.

However, it is worth noting the slight uptick in the cash conversion cycle in the most recent period as of September 30, 2024, which increased to 96.99 days. This may indicate areas where the company could focus on improving efficiency in managing its working capital components.

Overall, a lower cash conversion cycle is generally positive as it suggests improved liquidity and more efficient operations. Quaker Chemical Corporation should continue to monitor and manage its cash conversion cycle to ensure effective working capital management and optimize its financial performance.