Quaker Chemical Corporation (KWR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,384,320 | 1,277,920 | 1,387,290 | 1,320,360 | 1,240,760 |
| ROE | 8.14% | -1.25% | 8.75% | 3.00% | 2.55% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $112,748K ÷ $1,384,320K
= 8.14%
ROE is a key financial ratio that measures a company's ability to generate profit from its shareholder's equity. Quaker Houghton's ROE has shown fluctuating performance over the past five years. In 2023, the ROE increased to 8.10% from a negative figure of -1.24% in 2022, indicating a significant improvement in the company's profitability and efficiency in generating returns for its equity holders.
Compared to the two previous years, Quaker Houghton's ROE in 2023 is also higher than the 2019 and 2020 figures of 2.54% and 2.99% respectively. This suggests the company has managed to enhance its profitability and efficiency in utilizing equity to generate returns for investors. However, the ROE in 2023 is lower than the 8.71% recorded in 2021, indicating a slight decline in the company's overall profitability and efficiency compared to the previous year.
Overall, the upward trend in ROE from negative to positive values in recent years demonstrates a positive trajectory for Quaker Houghton in terms of utilizing its equity effectively to generate returns for shareholders.
Peer comparison
Dec 31, 2023