Quaker Chemical Corporation (KWR)

Liquidity ratios

	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
Current ratio	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	1.99	2.10	2.69	2.65
Quick ratio	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	1.65	1.44	1.94	1.90
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

Quaker Houghton's liquidity ratios show a consistent pattern of solid liquidity position over the past eight quarters. The current ratio has ranged from 2.52 to 2.84, indicating that the company has more than enough current assets to cover its short-term liabilities. The increasing trend in the current ratio from Q1 2022 to Q2 2023 suggests improving short-term liquidity.

Similarly, the quick ratio, which excludes inventory from current assets, has also shown a positive trend, ranging from 1.83 to 2.05. This indicates that the company can meet its short-term obligations without relying on selling off inventory.

The cash ratio has also shown improvement, ranging from 0.51 to 0.76. This ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents, shows that Quaker Houghton has been maintaining a healthy level of liquid assets to cover its current liabilities.

Overall, Quaker Houghton's liquidity ratios indicate a strong financial position with ample liquidity to meet its short-term obligations. The increasing trend in these ratios over the quarters suggests improving liquidity management and financial health for the company.

Additional liquidity measure

		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 conversion cycle	days	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	125.50	143.32	90.97	88.87

The cash conversion cycle of Quaker Houghton has shown some fluctuations over the past eight quarters, ranging from 97.49 days to 118.49 days. It measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

In Q4 2023, the cash conversion cycle decreased to 97.49 days from 99.98 days in Q3 2023, indicating that the company managed its working capital more efficiently during the quarter. However, compared to the same quarter in the previous year, the cycle has improved from 113.73 days in Q4 2022, reflecting a positive trend.

The longest cycle was recorded in Q3 2022 with 118.49 days, which may suggest potential issues in managing inventory or accounts receivable during that period. On the other hand, the shortest cycle was observed in Q4 2023, showing an improvement in the company's cash flow management processes.

Overall, Quaker Houghton's cash conversion cycle has been showing some variability, but the recent decrease in Q4 2023 is a positive sign of enhanced efficiency in working capital management. Continuous monitoring and optimization of this cycle can help the company maintain strong cash flow and liquidity positions.