Quaker Chemical Corporation (KWR)

Solvency ratios

	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
Debt-to-assets ratio	0.27	0.29	0.31	0.32	0.33	0.33	0.33	0.29	0.28	0.29	0.29	0.30	0.29	0.31	0.37	0.37	0.31	0.30	0.02	0.02
Debt-to-capital ratio	0.35	0.38	0.39	0.41	0.42	0.42	0.42	0.38	0.38	0.38	0.38	0.39	0.39	0.41	0.48	0.48	0.42	0.41	0.03	0.03
Debt-to-equity ratio	0.53	0.60	0.65	0.70	0.73	0.73	0.73	0.62	0.60	0.61	0.62	0.65	0.64	0.69	0.92	0.93	0.71	0.69	0.03	0.03
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

The solvency ratios of Quaker Houghton show the company's ability to meet its financial obligations in the long term.

The debt-to-assets ratio has been consistently decreasing from 0.34 in Q4 2022 to 0.28 in Q4 2023. This indicates that the company has been able to reduce its reliance on debt to finance its assets over time.

The debt-to-capital ratio and the debt-to-equity ratio have also shown a decreasing trend from Q4 2022 to Q4 2023. This suggests that the company is relying less on debt to finance its operations and is moving towards a more balanced capital structure.

The financial leverage ratio has fluctuated over the quarters but generally shows an increasing trend from Q4 2022 to Q4 2023. This implies that the company's level of financial leverage has been increasing, which could indicate higher financial risk.

Overall, Quaker Houghton's solvency ratios have shown improvement in terms of lower debt levels and a more balanced capital structure. However, the increasing financial leverage ratio may raise concerns about the company's ability to manage its debt effectively in the long term.

Coverage ratios

	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
Interest coverage	4.23	2.12	1.96	1.75	1.61	4.81	5.39	6.02	6.84	9.77	8.71	6.31	2.29	0.90	-0.69	-0.08	2.99	5.80	26.43	24.86

Based on the data provided for Quaker Houghton's interest coverage ratio over the past eight quarters, we observe a declining trend in the company's ability to cover its interest expenses. The interest coverage ratio has decreased from 7.35 in Q1 2022 to 4.68 in Q4 2023.

This indicates that the company's ability to meet its interest obligations from its operating income has weakened over time. A lower interest coverage ratio may raise concerns about the company's financial health and its ability to service its debt obligations comfortably.

It is essential for stakeholders and investors to closely monitor Quaker Houghton's interest coverage ratio to assess its financial stability and ability to manage its debt effectively. Further analysis of the company's operations and financial condition is recommended to better understand the reasons behind the declining trend in the interest coverage ratio.