Quaker Chemical Corporation (KWR)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,714,210 | 2,732,510 | 2,790,240 | 2,858,460 | 2,821,620 | 2,831,500 | 2,970,760 | 2,996,720 | 2,955,760 | 2,941,830 | 2,944,820 | 2,912,950 | 2,891,830 | 2,753,190 | 2,871,530 | 2,920,550 | 2,850,320 | 2,724,500 | 724,530 | 708,523 |
| Total stockholders’ equity | US$ in thousands | 1,384,320 | 1,340,380 | 1,335,980 | 1,316,110 | 1,277,920 | 1,279,000 | 1,329,940 | 1,395,070 | 1,387,290 | 1,383,080 | 1,374,800 | 1,328,890 | 1,320,360 | 1,225,940 | 1,166,910 | 1,162,120 | 1,240,760 | 1,202,020 | 456,507 | 444,991 |
| Financial leverage ratio | 1.96 | 2.04 | 2.09 | 2.17 | 2.21 | 2.21 | 2.23 | 2.15 | 2.13 | 2.13 | 2.14 | 2.19 | 2.19 | 2.25 | 2.46 | 2.51 | 2.30 | 2.27 | 1.59 | 1.59 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,714,210K ÷ $1,384,320K
= 1.96
Quaker Houghton's financial leverage ratio has fluctuated over the past eight quarters, ranging from 1.96 to 2.23. The trend shows a generally increasing pattern, reaching a peak of 2.23 in Q3 2022 before slightly decreasing in the most recent quarter. A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity. The higher the ratio, the more leveraged the company is, which can amplify returns in good times but also increases financial risk during downturns. Quaker Houghton's recent ratios suggest a relatively high level of financial leverage, which should be closely monitored to ensure it remains sustainable and does not pose a risk to the company's financial stability.
Peer comparison
Dec 31, 2023