Quaker Chemical Corporation (KWR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 194,527 | 180,963 | 165,176 | 181,833 | 123,524 |
| Short-term investments | US$ in thousands | — | — | — | — | 93,822 |
| Receivables | US$ in thousands | 444,950 | 472,888 | 430,676 | 372,974 | 375,982 |
| Total current liabilities | US$ in thousands | 367,510 | 354,786 | 430,467 | 382,960 | 359,934 |
| Quick ratio | 1.74 | 1.84 | 1.38 | 1.45 | 1.65 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($194,527K
+ $—K
+ $444,950K)
÷ $367,510K
= 1.74
The quick ratio of Quaker Houghton has shown fluctuations over the past five years, ranging from 1.50 to 2.00. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.
In 2023, the quick ratio was 1.89, reflecting a slight decrease compared to the previous year but still indicating that the company had a strong ability to meet its short-term obligations. The peak quick ratio of 2.00 in 2022 suggests an even healthier liquidity position, possibly due to increased cash or easily marketable securities on hand.
On the other hand, the lower quick ratios in 2021, 2020, and 2019 (1.52, 1.58, and 1.50 respectively) indicate a relatively lower level of liquidity compared to the more recent years. This may suggest that Quaker Houghton had fewer liquid assets to cover its short-term obligations during those periods.
Overall, the trend of the quick ratio for Quaker Houghton demonstrates some variability, but generally indicates a reasonable liquidity position over the years, with occasional fluctuations possibly influenced by factors such as inventory management, accounts receivable collections, and cash management strategies.
Peer comparison
Dec 31, 2023