Quaker Chemical Corporation (KWR)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 116,644 | 112,748 | -15,931 | 121,369 | 39,658 |
| Total stockholders’ equity | US$ in thousands | 1,353,570 | 1,384,320 | 1,277,920 | 1,387,290 | 1,320,360 |
| ROE | 8.62% | 8.14% | -1.25% | 8.75% | 3.00% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $116,644K ÷ $1,353,570K
= 8.62%
Quaker Chemical Corporation's return on equity (ROE) has shown fluctuations over the past five years.
- The ROE was 3.00% as of December 31, 2020, indicating a relatively low profitability for the shareholders' investment.
- It improved significantly to 8.75% by December 31, 2021, suggesting a positive trend in the company's ability to generate profit from shareholder equity.
- However, the ROE dropped to -1.25% by December 31, 2022, indicating a loss on equity for that period, which can be a concerning sign for investors.
- The company managed to turn this around by achieving an ROE of 8.14% by December 31, 2023, showing a recovery in profitability.
- By December 31, 2024, the ROE further increased to 8.62%, indicating continued improvement in the company's efficiency in utilizing shareholder equity to generate profits.
Overall, while there have been fluctuations in Quaker Chemical Corporation's ROE over the past five years, the recent trend shows an improvement in profitability and efficiency in utilizing shareholder equity, which is a positive sign for the company's financial performance.
Peer comparison
Dec 31, 2024