Quaker Chemical Corporation (KWR)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,610,650 | 2,735,680 | 2,672,190 | 2,714,370 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,353,570 | 1,445,660 | 1,395,020 | 1,391,230 | 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 |
| Financial leverage ratio | 1.93 | 1.89 | 1.92 | 1.95 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,610,650K ÷ $1,353,570K
= 1.93
Quaker Chemical Corporation's financial leverage ratio has shown a decreasing trend over the past few years, from 2.51 as of March 31, 2020, to 1.93 as of December 31, 2024. This indicates that the company has been improving its financial stability by reducing its reliance on debt in relation to its equity.
A lower financial leverage ratio suggests that the company has a stronger equity base compared to its debt, which can be seen as a positive sign for investors and creditors. It may also imply that the company has better control over its financial obligations and is less vulnerable to financial distress in case of economic downturns.
However, it is essential to note that while a decreasing trend in financial leverage ratio can be positive, it is crucial to assess the impact on profitability and growth opportunities, as excessively low leverage ratios may indicate underutilization of debt for potential expansion or investment activities. Monitoring this ratio in conjunction with other financial metrics can provide a more comprehensive understanding of Quaker Chemical Corporation's overall financial health and risk profile.
Peer comparison
Dec 31, 2024