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

Company name
Symbol
Financial leverage ratio
Quaker Chemical Corporation
KWR
1.96
Valvoline Inc
VVV
41.81