Quaker Chemical Corporation (KWR)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 214,495 112,631 97,722 72,830 52,304 136,661 128,062 134,975 160,713 184,164 184,848 148,658 60,965 27,922 -20,905 -1,857 50,682 48,066 85,729 88,571
Long-term debt US$ in thousands 730,623 804,973 863,934 921,555 933,561 931,491 972,369 858,287 836,412 839,275 847,154 859,433 849,068 846,070 1,070,310 1,076,290 882,437 826,503 11,788 11,720
Total stockholders’ equity US$ in thousands 1,384,320 1,340,380 1,335,980 1,316,110 1,277,920 1,279,000 1,329,940 1,395,070 1,387,290 1,383,080 1,374,800 1,328,890 1,320,360 1,225,940 1,166,910 1,162,120 1,240,760 1,202,020 456,507 444,991
Return on total capital 10.14% 5.25% 4.44% 3.25% 2.37% 6.18% 5.56% 5.99% 7.23% 8.29% 8.32% 6.79% 2.81% 1.35% -0.93% -0.08% 2.39% 2.37% 18.31% 19.39%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $214,495K ÷ ($730,623K + $1,384,320K)
= 10.14%

Quaker Houghton's return on total capital has shown a positive trend over the past eight quarters, indicating improving efficiency in utilizing its total capital. The company's return on total capital increased steadily from 6.40% in Q2 2022 to 11.10% in Q4 2023, showcasing consistent growth in generating profits relative to its total capital employed. This suggests that Quaker Houghton has been effectively managing its assets and liabilities to generate higher returns for its investors. Overall, the increasing trend in return on total capital reflects positively on the company's operational performance and financial health.


Peer comparison

Dec 31, 2023

Company name
Symbol
Return on total capital
Quaker Chemical Corporation
KWR
10.14%
Valvoline Inc
VVV
17.31%