Quaker Chemical Corporation (KWR)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 37.48% | 36.50% | 35.18% | 33.73% | 32.57% | 31.90% | 31.72% | 32.86% | 34.17% | 35.61% | 37.20% | 37.15% | 37.08% | 36.29% | 34.75% | 34.98% | 34.83% | 34.98% | 36.25% | 36.25% |
| Operating profit margin | 11.39% | 5.95% | 5.15% | 3.84% | 2.78% | 7.32% | 7.01% | 7.59% | 8.65% | 9.20% | 9.62% | 8.09% | 4.29% | 3.21% | -0.33% | 1.08% | 4.10% | 4.86% | 10.08% | 10.13% |
| Pretax margin | 8.94% | 3.38% | 2.78% | 1.34% | 0.48% | 5.40% | 5.29% | 7.29% | 8.98% | 10.77% | 11.19% | 8.68% | 2.48% | -0.23% | -3.78% | -2.06% | 2.99% | 4.21% | 9.74% | 9.86% |
| Net profit margin | 5.99% | 0.88% | 0.46% | -0.33% | -0.85% | 4.19% | 4.56% | 5.77% | 6.97% | 9.04% | 9.28% | 7.40% | 2.86% | 0.46% | -2.50% | -0.82% | 2.81% | 2.56% | 6.72% | 7.03% |
Quaker Houghton's profitability ratios have shown an improving trend over the quarters in terms of gross profit margin, operating profit margin, pretax margin, and net profit margin. The gross profit margin has been steadily increasing from 31.52% in Q4 2022 to 36.13% in Q4 2023, indicating efficient cost management and pricing strategies.
Similarly, the operating profit margin has shown consistent growth, reaching 11.37% in Q4 2023, reflecting the company's ability to control operating expenses effectively while generating revenue. The pretax margin has also improved significantly over the quarters, with a notable increase from 0.47% in Q4 2022 to 8.62% in Q4 2023, indicating better profitability before accounting for taxes.
Moreover, the net profit margin has shown a positive trend, turning negative in Q1 2023 to a positive 5.74% in Q4 2023, demonstrating the company's ability to generate profit after all expenses, including taxes. Overall, the improving profitability ratios suggest Quaker Houghton's efforts in enhancing operational efficiency and driving profitability over the quarters.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.90% | 4.12% | 3.50% | 2.55% | 1.85% | 4.83% | 4.31% | 4.50% | 5.09% | 5.25% | 5.20% | 4.01% | 2.05% | 1.63% | -0.15% | 0.47% | 1.62% | 1.69% | 11.78% | 12.33% |
| Return on assets (ROA) | 4.15% | 0.61% | 0.32% | -0.22% | -0.56% | 2.76% | 2.81% | 3.42% | 4.11% | 5.16% | 5.02% | 3.66% | 1.37% | 0.23% | -1.18% | -0.36% | 1.11% | 0.89% | 7.86% | 8.55% |
| Return on total capital | 10.14% | 5.25% | 4.44% | 3.25% | 2.37% | 6.18% | 5.56% | 5.99% | 7.23% | 8.29% | 8.32% | 6.79% | 2.81% | 1.35% | -0.93% | -0.08% | 2.39% | 2.37% | 18.31% | 19.39% |
| Return on equity (ROE) | 8.14% | 1.24% | 0.66% | -0.47% | -1.25% | 6.11% | 6.27% | 7.35% | 8.75% | 10.97% | 10.76% | 8.03% | 3.00% | 0.52% | -2.91% | -0.91% | 2.55% | 2.01% | 12.47% | 13.61% |
Quaker Houghton's profitability ratios show an overall positive trend over the quarters analyzed. The Operating return on assets (Operating ROA) has steadily increased from 5.28% in Q1 2022 to 8.18% in Q4 2023, indicating the company's ability to generate earnings from its assets through core operations has improved consistently.
Return on assets (ROA) also shows a positive trend, with the ratio moving from negative values in Q1 and Q4 2022 to 4.13% in Q4 2023. This suggests that the company has become more efficient in generating profits relative to its total assets over time.
Return on total capital has shown a similar upward trend, increasing from 6.40% in Q1 2022 to 11.10% in Q4 2023. This indicates that Quaker Houghton's ability to generate returns from all sources of capital has improved significantly.
Return on equity (ROE) has also demonstrated an upward trajectory, rising from negative values in Q1 and Q4 2022 to 8.10% in Q4 2023. This suggests that the company's profitability in relation to its shareholders' equity has strengthened over the quarters analyzed.
Overall, the profitability ratios of Quaker Houghton indicate a consistent improvement in the company's ability to generate profits from its assets, capital, and equity over time.