Quaker Houghton (Quaker Houghton) Interest Coverage

: 4.17 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Quaker Houghton's Operating Income for the three months ended in Dec. 2023 was $50 Mil. Quaker Houghton's Interest Expense for the three months ended in Dec. 2023 was $-12 Mil. Quaker Houghton's interest coverage for the quarter that ended in Dec. 2023 was 4.17. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Quaker Houghton's Interest Coverage or its related term are showing as below:

KWR' s Interest Coverage Range Over the Past 10 Years
Min: 4.41 Med: 17.28 Max: 69
Current: 4.41

KWR's Interest Coverage is ranked worse than
71% of 1193 companies
in the Chemicals industry
Industry Median: 9.67 vs KWR: 4.41

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Quaker Houghton Interest Coverage Historical Data

The historical data trend for Quaker Houghton's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Quaker Houghton Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

6.44

5.11

8.55

4.78

4.41

Quaker Houghton Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																3.56	4.10	4.62	4.74	4.17

Competitive Comparison

For the Specialty Chemicals subindustry, Quaker Houghton's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Quaker Houghton Interest Coverage Distribution

For the Chemicals industry and Basic Materials sector, Quaker Houghton's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Quaker Houghton's Interest Coverage falls into.

Quaker Houghton Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Quaker Houghton's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Quaker Houghton's Interest Expense was $-51 Mil. Its Operating Income was $223 Mil. And its Long-Term Debt & Capital Lease Obligation was $754 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	223.422	/	-50.699
	=	4.41

Quaker Houghton's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Quaker Houghton's Interest Expense was $-12 Mil. Its Operating Income was $50 Mil. And its Long-Term Debt & Capital Lease Obligation was $754 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	49.807	/	-11.955
	=	4.17

The higher the ratio, the stronger the company's Financial Strength is.

Quaker Houghton (NYSE:KWR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Quaker Houghton Interest Coverage Related Terms

Thank you for viewing the detailed overview of Quaker Houghton's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Quaker Houghton (Quaker Houghton) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Quaker Houghton (NYSE:KWR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

901 East Hector Street, Conshohocken, PA, USA, 19428-2380

Website

https://www.quakerhoughton.com

Quaker Houghton manufactures and sells a variety of industrial process fluids. The product portfolio of the company includes metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids and surface treatment chemicals. The geographic segments of the company includes America, EMEA, Asia/Pacific and Global Specialty Businesses. Majority of the revenue is earned from America.

Executives

Jeewat Bijlani	officer: SVP - Managing Director, Ams.	QUAKER CHEMICAL CORPORATION, ONE QUAKER PARK, 901 E. HECTOR STREET, CONSHOHOCKEN PA 19428-2380
Anna Ransley	officer: SVP, CDIO	QUAKER CHEMICAL CORPORATION, 901 E. HECTOR STREET, CONSHOHOCKEN PA 19428-2380
Russell Shaller	director	6555 WEST GOOD HOPE RD, MILWAUKEE WI 53223
Melissa Leneis	officer: SVP, CHRO	QUAKER CHEMICAL CORPORATION, 901 E. HECTOR STREET, CONSHOHOCKEN PA 19428-2380
Jeffry D Frisby	director	C/O QUAKER CHEMICAL CORPORATION, ONE QUAKER PARK, 901 HECTOR STREET, CONSHOHOCKEN PA 19428
David Slinkman	officer: SVP - Chief Technology Officer	QUAKER CHEMICAL CORPORATION, ONE QUAKER PARK, 901 E. HECTOR STREET, CONSHOHOCKEN PA 19428-2380
Joseph A Berquist	officer: VP & Managing Director - NA	QUAKER CHEMICAL CORPORATION, ONE QUAKER PARK, 901 E. HECTOR STREET, CONSHOHOCKEN PA 19428-2380
Robert T Traub	officer: SVP, GC & Corp. Sec.	QUAKER CHEMICAL CORPORATION, ONE QUAKER PARK, 901 E. HECTOR STREET, CONSHOHOCKEN PA 19428-2380
David Will	other: VP, Global Controller & PAO	QUAKER CHEMICAL CORPORATION, 901 E. HECTOR STREET, CONSHOHOCKEN PA 19428-2380
Michael F Barry	officer: VP & CFO & Treasurer	ONE QUAKER PARK, 901 HECTOR ST, CONSHOHOCHEN PA 19428
Jeffrey L Fleck	officer: SVP, Chief GSCO	1310 SEABOARD INDUSTRIAL BLVD, ATLANTA X1 30318
L Wilbert Platzer	officer: VP - WWO
Dieter Laininger	officer: Vice President - Global Steel	QUAKER CHEMICAL CORPORATION, ONE QUAKER PARK, 901 E. HECTOR STREET, CONSHOHOCKEN PA 19428-2380
Gulf Hungary Holding Korlatolt Felelossegu Tarsasag	10 percent owner	FURJ UTCA 2, BUDAPEST K5 1124
Qh Hungary Holdings Ltd	10 percent owner	STERLING TRUST CAYMAN LTD, WH, 238 NORTH CHURCH STREET, P.O BOX 1043, GEORGE TOWN E9 KY1-1102