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