Quaker Chemical Corporation (KWR)
Debt-to-equity 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-equity ratio | 0.53 | 0.73 | 0.60 | 0.64 | 0.71 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $730,623K ÷ $1,384,320K
= 0.53
Quaker Houghton's debt-to-equity ratio has shown fluctuations over the past five years.
In 2019, the ratio was at its highest point at 0.74, indicating that the company had more debt relative to its equity. However, in the following years, the company managed to reduce its dependence on debt, as evidenced by decreasing ratios of 0.67 in 2020, 0.64 in 2021, and 0.75 in 2022.
Notably, by the end of 2023, the debt-to-equity ratio further improved to 0.54, suggesting a more conservative financial structure with lower debt levels compared to equity. This downward trend in the ratio indicates that Quaker Houghton has been effectively managing its debt levels and strengthening its equity position, which can enhance financial stability and reduce financial risk.
Overall, the decreasing trend in the debt-to-equity ratio over the years reflects an improving financial position for Quaker Houghton and may indicate a prudent approach to capital structure management.
Peer comparison
Dec 31, 2023