Quaker Chemical Corporation (KWR)

Quick 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 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
Receivables US$ in thousands 444,950 446,459 454,230 482,746 472,888 461,912 465,352 458,459 430,676 433,631 418,642 411,523 372,974 338,875 300,027 357,902 375,982 370,725 210,347 208,003
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
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

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 been relatively stable over the past eight quarters, ranging from 1.52 to 2.05. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Quaker Houghton's quick ratio has generally been above 1, indicating that the company has an adequate level of liquid assets to cover its current liabilities. A quick ratio above 1 is typically considered a healthy sign of a company's liquidity.

The fluctuations in the quick ratio over the quarters may be due to changes in the company's current assets and liabilities composition. Despite these fluctuations, the quick ratio has generally remained above 1.5, which is considered a prudent level for most industries.

Overall, the consistent and relatively high quick ratio of Quaker Houghton suggests that the company has a solid financial position and should be able to meet its short-term obligations without much difficulty.


Peer comparison

Dec 31, 2023

Company name
Symbol
Quick ratio
Quaker Chemical Corporation
KWR
1.74
Valvoline Inc
VVV
1.97