Quaker Chemical Corporation (KWR)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 730,623 | 933,561 | 836,412 | 849,068 | 882,437 |
| Total assets | US$ in thousands | 2,714,210 | 2,821,620 | 2,955,760 | 2,891,830 | 2,850,320 |
| Debt-to-assets ratio | 0.27 | 0.33 | 0.28 | 0.29 | 0.31 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $730,623K ÷ $2,714,210K
= 0.27
The debt-to-assets ratio of Quaker Houghton has shown a decreasing trend over the past five years, indicating a lower reliance on debt financing relative to the total assets owned by the company. As of December 31, 2023, the ratio stands at 0.28, reflecting that 28% of the company's assets are financed through debt. This marks an improvement from the previous year's ratio of 0.34 and suggests that Quaker Houghton has been able to manage its debt levels more efficiently.
The decreasing trend in the debt-to-assets ratio signifies a potentially stronger financial position for Quaker Houghton, as lower levels of debt relative to assets can lead to lower financial risk and improved solvency. It may also indicate that the company has been able to generate sufficient internal funds to support its operations and investments, reducing the need for external borrowing.
Overall, the downward trajectory of the debt-to-assets ratio for Quaker Houghton demonstrates a positive financial performance in terms of debt management and asset utilization, which can contribute to long-term sustainability and stability for the company.
Peer comparison
Dec 31, 2023