Quaker Chemical Corporation (KWR)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,384,320 | 1,277,920 | 1,387,290 | 1,320,360 | 1,240,760 |
| Debt-to-capital ratio | 0.35 | 0.42 | 0.38 | 0.39 | 0.42 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $730,623K ÷ ($730,623K + $1,384,320K)
= 0.35
The debt-to-capital ratio of Quaker Houghton has shown a decreasing trend over the past five years, declining from 0.43 in 2019 to 0.35 in 2023. This indicates that the company has been reducing its reliance on debt in relation to its total capital structure. A lower debt-to-capital ratio is generally viewed favorably by investors and creditors as it reflects a lower level of financial risk and leverage. However, it is important to consider the industry norms and company's specific circumstances when evaluating the significance of this trend. Overall, the decreasing debt-to-capital ratio suggests that Quaker Houghton has been managing its debt levels effectively in recent years.
Peer comparison
Dec 31, 2023