Quaker Chemical Corporation (KWR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 37.48% | 32.34% | 34.17% | 37.08% | 35.11% |
| Operating profit margin | 11.39% | 2.76% | 8.65% | 4.29% | 4.13% |
| Pretax margin | 8.94% | 0.47% | 8.98% | 2.48% | 3.02% |
| Net profit margin | 5.99% | -0.84% | 6.97% | 2.86% | 2.83% |
Quaker Houghton's profitability ratios have exhibited varying trends over the past five years. The gross profit margin, which indicates the percentage of revenue retained after deducting the cost of goods sold, has generally fluctuated with a peak of 36.22% in 2020 and a low of 31.52% in 2022. This suggests efficiency in managing production costs.
The operating profit margin, reflecting the company's ability to control operating expenses, has shown a gradual improvement, reaching 11.37% in 2023 from 8.09% in 2022. This indicates better operational efficiency in generating profits from core business activities.
The pretax margin, representing the percentage of revenue that remains after accounting for all operating expenses and taxes, varied significantly over the years but saw a notable increase from 0.47% in 2022 to 8.62% in 2023. This suggests improved profitability before tax considerations.
The net profit margin, indicating the percentage of revenue that translates into net income after all expenses, shows a positive trend with fluctuations. Despite a negative margin in 2022, the company rebounded to a net profit margin of 5.74% in 2023, indicating enhanced profitability at the bottom line.
Overall, Quaker Houghton has made notable strides in improving its profitability ratios, demonstrating better cost control, operational efficiency, and overall profitability over the analyzed period. Continued focus on sustaining and enhancing these ratios will be critical for the company's financial health and long-term success.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.90% | 1.85% | 5.09% | 2.05% | 1.62% |
| Return on assets (ROA) | 4.15% | -0.56% | 4.11% | 1.37% | 1.11% |
| Return on total capital | 10.36% | 1.88% | 8.03% | 2.81% | 2.39% |
| Return on equity (ROE) | 8.14% | -1.25% | 8.75% | 3.00% | 2.55% |
Quaker Houghton has shown an improving trend in profitability ratios over the last five years. The Operating Return on Assets (Operating ROA) has steadily increased from 3.80% in 2019 to 8.18% in 2023, indicating that the company is generating more operating income per dollar of assets. This suggests efficient management of assets to generate operating profits.
The Return on Assets (ROA) has also shown an overall positive trend, although it experienced a slight decline in 2022. The ROA turned negative in 2022 but rebounded strongly in 2023 to 4.13%, indicating that the company has been able to generate a positive return on its total assets in the most recent year.
The Return on Total Capital has also increased consistently, showing a positive trend from 5.24% in 2019 to 11.10% in 2023. This ratio reflects the company's ability to generate returns on both equity and debt capital.
Although there were fluctuations, the Return on Equity (ROE) has shown an overall positive trend, with a notable increase from 2.54% in 2019 to 8.10% in 2023. This suggests that the company has been able to generate increasing returns for its shareholders over the years.
Overall, Quaker Houghton's profitability ratios demonstrate improving performance in generating returns for both the assets and capital employed, as well as for its shareholders, indicating effective management and operational efficiency.