Quaker Chemical Corporation (KWR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,610,650 | 2,714,210 | 2,821,620 | 2,955,760 | 2,891,830 |
| Total stockholders’ equity | US$ in thousands | 1,353,570 | 1,384,320 | 1,277,920 | 1,387,290 | 1,320,360 |
| Financial leverage ratio | 1.93 | 1.96 | 2.21 | 2.13 | 2.19 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,610,650K ÷ $1,353,570K
= 1.93
The financial leverage ratio of Quaker Chemical Corporation has exhibited a fluctuating trend over the past five years. Starting at 2.19 in December 31, 2020, the ratio decreased to 2.13 by December 31, 2021, before increasing to 2.21 by December 31, 2022. However, in the following years, the ratio experienced a notable decline to 1.96 by December 31, 2023, and further dropped to 1.93 by December 31, 2024.
This indicates that the company's reliance on debt in its capital structure has been gradually decreasing over the years. A lower financial leverage ratio suggests that Quaker Chemical Corporation is financing a smaller portion of its assets with debt, which can be seen as a positive sign in terms of financial stability and risk management. However, it is important to assess the impact of this trend on the company's overall profitability and growth strategies.
Peer comparison
Dec 31, 2024