Quaker Chemical Corporation (KWR)

Solvency ratios

	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
Debt-to-assets ratio	0.26	0.26	0.26	0.27	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
Debt-to-capital ratio	0.33	0.33	0.34	0.35	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
Debt-to-equity ratio	0.49	0.48	0.50	0.53	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
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

Quaker Chemical Corporation's solvency ratios show a consistent trend of improving financial health over the years. The Debt-to-assets ratio has steadily declined from 0.37 in March 2020 to 0.26 in December 2024, indicating a decreasing reliance on debt to finance assets.

Similarly, the Debt-to-capital ratio has shown a downward trend from 0.48 in March 2020 to 0.33 in December 2024, signifying a reduction in the proportion of debt in the company's capital structure.

The Debt-to-equity ratio has also decreased from 0.93 in March 2020 to 0.49 in December 2024, illustrating a lower level of financial risk relative to equity.

Moreover, the Financial leverage ratio has consistently declined from 2.51 in March 2020 to 1.93 in December 2024, demonstrating a decreasing reliance on debt financing and a strengthening balance sheet.

These improving solvency ratios suggest that Quaker Chemical Corporation has been effectively managing its debt levels and maintaining a more stable financial position, which may enhance its ability to meet its financial obligations and withstand economic uncertainties.

Coverage ratios

	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
Interest coverage	4.50	4.93	4.90	4.58	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

Quaker Chemical Corporation's interest coverage ratio has shown varying trends over the past few years. The ratio was negative in the earlier periods, indicating that the company's operating income was insufficient to cover its interest expenses. However, starting from September 2020, the interest coverage turned positive, signaling an improvement in the company's ability to meet its interest obligations.

The interest coverage ratio increased steadily from 0.90 in September 2020 to a peak of 9.77 in September 2021, reflecting a strong capacity to service its interest payments from operating earnings. This trend continued to March 2023, with the ratio staying above 2.00, which is generally considered a healthy level.

From March 2023 onwards, the interest coverage ratio experienced some fluctuations but remained above 1.50, indicating that the company's earnings continued to comfortably cover its interest expenses. The ratio peaked at 4.93 in September 2024 before slightly declining to 4.50 by December 2024.

Overall, Quaker Chemical Corporation's interest coverage ratio has shown improvement and stability in recent years, suggesting that the company has been effectively managing its interest obligations relative to its operating performance. Investors and stakeholders may view this trend positively as it indicates a sound financial position in terms of debt repayment capabilities.