Quaker Chemical Corporation (KWR)

Return on assets (ROA)

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
Net income (ttm) US$ in thousands 112,748 16,593 8,790 -6,213 -15,931 78,152 83,343 102,570 121,369 151,713 147,959 106,654 39,658 6,428 -33,929 -10,603 31,622 24,187 56,930 60,585
Total assets US$ in thousands 2,714,210 2,732,510 2,790,240 2,858,460 2,821,620 2,831,500 2,970,760 2,996,720 2,955,760 2,941,830 2,944,820 2,912,950 2,891,830 2,753,190 2,871,530 2,920,550 2,850,320 2,724,500 724,530 708,523
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%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $112,748K ÷ $2,714,210K
= 4.15%

Quaker Houghton's Return on Assets (ROA) has shown fluctuating performance over the past eight quarters. In Q4 2023, the ROA improved significantly to 4.13%, reflecting a positive trend compared to the previous quarter. This increase suggests that the company's ability to generate profits from its assets has strengthened.

Prior to Q4 2023, Quaker Houghton experienced a downward trend in ROA, with the metric reaching as low as -0.56% in Q4 2022. The subsequent recovery in Q1 2023 was short-lived as the ROA turned negative again in Q2 2023 before rebounding in Q3 2023.

Overall, the recent improvement in ROA indicates that Quaker Houghton may be effectively utilizing its assets to generate earnings. However, the fluctuating nature of ROA over the quarters suggests that the company's asset management and profitability performance warrant further monitoring and analysis to assess the sustainability of this positive trend.


Peer comparison

Dec 31, 2023

Company name
Symbol
ROA
Quaker Chemical Corporation
KWR
4.15%
Valvoline Inc
VVV
50.56%