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Quaker Houghton (Quaker Houghton) ROE % : 5.93% (As of Dec. 2023)


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What is Quaker Houghton ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Quaker Houghton's annualized net income for the quarter that ended in Dec. 2023 was $81 Mil. Quaker Houghton's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1,362 Mil. Therefore, Quaker Houghton's annualized ROE % for the quarter that ended in Dec. 2023 was 5.93%.

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

KWR' s ROE % Range Over the Past 10 Years
Min: -1.2   Med: 8.72   Max: 16.3
Current: 8.47

During the past 13 years, Quaker Houghton's highest ROE % was 16.30%. The lowest was -1.20%. And the median was 8.72%.

KWR's ROE % is ranked better than
64.76% of 1541 companies
in the Chemicals industry
Industry Median: 5.41 vs KWR: 8.47

Quaker Houghton ROE % Historical Data

The historical data trend for Quaker Houghton's ROE % 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.

* Premium members only.

Quaker Houghton ROE % Chart

Quaker Houghton Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.77 3.10 8.96 -1.20 8.47

Quaker Houghton Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -23.77 9.11 8.85 10.06 5.93

Competitive Comparison of Quaker Houghton's ROE %

For the Specialty Chemicals subindustry, Quaker Houghton's ROE %, along with its competitors' market caps and ROE % 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's ROE % Distribution in the Chemicals Industry

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

* The bar in red indicates where Quaker Houghton's ROE % falls into.



Quaker Houghton ROE % Calculation

Quaker Houghton's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=112.748/( (1277.918+1384.319)/ 2 )
=112.748/1331.1185
=8.47 %

Quaker Houghton's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=80.792/( (1340.378+1384.319)/ 2 )
=80.792/1362.3485
=5.93 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Quaker Houghton  (NYSE:KWR) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=80.792/1362.3485
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(80.792 / 1868.436)*(1868.436 / 2723.3585)*(2723.3585 / 1362.3485)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.32 %*0.6861*1.999
=ROA %*Equity Multiplier
=2.96 %*1.999
=5.93 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=80.792/1362.3485
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (80.792 / 136.736) * (136.736 / 199.228) * (199.228 / 1868.436) * (1868.436 / 2723.3585) * (2723.3585 / 1362.3485)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.5909 * 0.6863 * 10.66 % * 0.6861 * 1.999
=5.93 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Quaker Houghton ROE % Related Terms

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


Quaker Houghton (Quaker Houghton) Business Description

Traded in Other Exchanges
N/A
Address
901 East Hector Street, Conshohocken, PA, USA, 19428-2380
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

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