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