Quaker Chemical Corporation (KWR)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 669,614 | 730,623 | 933,561 | 836,412 | 849,068 |
| Total assets | US$ in thousands | 2,610,650 | 2,714,210 | 2,821,620 | 2,955,760 | 2,891,830 |
| Debt-to-assets ratio | 0.26 | 0.27 | 0.33 | 0.28 | 0.29 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $669,614K ÷ $2,610,650K
= 0.26
The debt-to-assets ratio for Quaker Chemical Corporation has been relatively low and stable over the past five years, ranging from 0.26 to 0.33. This ratio indicates that, on average, only about 26% to 33% of the company's total assets are financed through debt, with the remaining 67% to 74% being financed through equity.
A decreasing trend in the debt-to-assets ratio from 0.33 in December 2022 to 0.26 in December 2024 suggests that the company may be reducing its reliance on debt financing and strengthening its financial position. This trend could signal improved financial stability and lower financial risk for Quaker Chemical Corporation.
Overall, the company's consistent and relatively low debt-to-assets ratio indicates a prudent debt management strategy and a healthy balance between debt and equity financing in its capital structure.
Peer comparison
Dec 31, 2024