Quaker Chemical Corporation (KWR)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 112,748 | -15,931 | 121,369 | 39,658 | 31,622 |
| Total assets | US$ in thousands | 2,714,210 | 2,821,620 | 2,955,760 | 2,891,830 | 2,850,320 |
| ROA | 4.15% | -0.56% | 4.11% | 1.37% | 1.11% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $112,748K ÷ $2,714,210K
= 4.15%
Quaker Houghton's Return on Assets (ROA) has varied significantly over the past five years, as indicated by the data provided. In 2023, the ROA stands at 4.13%, a marked improvement from the previous year's -0.56%. This positive trend suggests that the company is generating a higher level of profit relative to its total assets in 2023.
Comparing the ROA for 2023 with 2022, it is evident that Quaker Houghton has made substantial operational improvements in terms of asset utilization and profit generation. The company's ability to generate a positive ROA in 2023 after a negative performance in 2022 indicates a commendable turnaround.
Looking back further, the ROA was also relatively high in 2021 at 4.09%, showing that Quaker Houghton has historically been able to effectively generate profits from its assets. The ROA in 2020 and 2019 stood at 1.37% and 1.11% respectively, indicating a consistent but comparatively lower performance during those years.
Overall, the recent increase in ROA reflects positively on Quaker Houghton's operational efficiency and profitability. It suggests that the company is effectively utilizing its assets to generate profits, which is a key indicator of financial health and performance.
Peer comparison
Dec 31, 2023