Quaker Chemical Corporation (KWR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 37.31% | 37.48% | 32.34% | 34.17% | 37.08% |
| Operating profit margin | 10.59% | 11.39% | 2.76% | 8.65% | 4.29% |
| Pretax margin | 9.02% | 8.94% | 0.47% | 8.98% | 2.48% |
| Net profit margin | 6.34% | 5.99% | -0.84% | 6.97% | 2.86% |
Quaker Chemical Corporation's profitability ratios have shown some fluctuation over the past five years.
The Gross Profit Margin, which measures the percentage of revenue retained after accounting for the cost of goods sold, decreased from 37.08% in 2020 to 32.34% in 2022 but rebounded to 37.48% in 2023 before settling at 37.31% in 2024.
The Operating Profit Margin, indicating the percentage of revenue converted into operating income, saw improvement over the period, rising from 4.29% in 2020 to 10.59% in 2024, with fluctuations in between.
The Pretax Margin, representing the percentage of revenue that translates into pre-tax profit, varied significantly from 2020 to 2022 but stabilized around 9% in 2023 and 2024.
The Net Profit Margin, which reveals the percentage of revenue that turns into net income for the company, showed a similar trend as the pretax margin, with negative performance in 2022 but a recovery in subsequent years to reach 6.34% in 2024.
Overall, Quaker Chemical Corporation has demonstrated the ability to manage its profitability ratios effectively, with improvements in operating and net profit margins by the end of the period, despite some fluctuations along the way.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.46% | 7.90% | 1.85% | 5.09% | 2.05% |
| Return on assets (ROA) | 4.47% | 4.15% | -0.56% | 4.11% | 1.37% |
| Return on total capital | 9.62% | 10.36% | 1.88% | 8.03% | 2.81% |
| Return on equity (ROE) | 8.62% | 8.14% | -1.25% | 8.75% | 3.00% |
Quaker Chemical Corporation's profitability ratios display fluctuations over the years. The Operating ROA showed an improvement from 2020 (2.05%) to 2023 (7.90%) before slightly decreasing in 2024 to 7.46%. This indicates that the company generated 7.90% of operating income for every dollar of assets in 2023.
Similarly, the ROA increased from 1.37% in 2020 to 4.47% in 2024, showing a positive trend in overall profitability relative to the company's total assets. The Return on total capital also depicted growth from 2.81% in 2020 to 9.62% in 2024, suggesting an increase in returns generated on both equity and liabilities.
In contrast, the ROA and ROE had slightly negative performance in 2022, each at -0.56% and -1.25%, respectively. However, both indicators rebounded in the subsequent years. The ROE showed consistency in improvement from 2020 to 2024, reaching 8.62% in the last year.
Overall, Quaker Chemical Corporation's profitability ratios demonstrate varying performance levels throughout the years, with notable improvements in certain key ratios such as Operating ROA, ROA, and Return on total capital.