Quaker Chemical Corporation (KWR)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 194,706 | 219,032 | 41,573 | 178,634 | 60,965 |
| Long-term debt | US$ in thousands | 669,614 | 730,623 | 933,561 | 836,412 | 849,068 |
| Total stockholders’ equity | US$ in thousands | 1,353,570 | 1,384,320 | 1,277,920 | 1,387,290 | 1,320,360 |
| Return on total capital | 9.62% | 10.36% | 1.88% | 8.03% | 2.81% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $194,706K ÷ ($669,614K + $1,353,570K)
= 9.62%
Quaker Chemical Corporation's return on total capital has shown fluctuating trends over the past five years. It increased from 2.81% as of December 31, 2020 to 8.03% as of December 31, 2021, indicating improved efficiency in generating returns relative to the total capital employed. However, there was a decline in the return on total capital to 1.88% as of December 31, 2022, suggesting potential issues with capital allocation or operational performance.
Subsequently, there was a notable recovery in the return on total capital to 10.36% as of December 31, 2023, signaling enhanced profitability and effective capital utilization. The performance remained strong in the following year, with a return on total capital of 9.62% as of December 31, 2024, showcasing continued sustainability in generating returns relative to the total capital invested.
Overall, Quaker Chemical Corporation's return on total capital has demonstrated both positive and negative fluctuations during the period under review, reflecting varying levels of capital efficiency and performance. Further analysis of the underlying factors driving these changes would be necessary to assess the sustainability and long-term growth prospects of the company.
Peer comparison
Dec 31, 2024