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Quaker Houghton (KWR) Financials

KWR
Trailing 12 months to June 30, 2026
Revenue $2.0B +7.8% YoY
Net Income $97.7M +1470.7% YoY
EPS (Diluted) $5.61 +1404.7% YoY
Free Cash Flow $74.6M -37.1% YoY
Market Cap $2.7B as of Oct 10, 2026
Price / Sales 1.4x on $2.0B revenue, trailing 12 months to June 30, 2026
Price / Earnings 27.5x on $97.7M net income, trailing 12 months to June 30, 2026
Price / Book 1.9x on $1.4B equity, Q2 FY2026

A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 10, 2026; every other figure is from the SEC filings on this page. Not financial advice.

Source SEC Filings (10-K/10-Q) Latest period Q2 FY2026, ended Jun 30, 2026 Reported Currency USD FYE December

Newest figures come from the 10-Q for Q2 FY2026, filed Jul 30, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the KWR SEC filings page.

Quaker Houghton (KWR) reported $2.0B in revenue over the twelve months to Jun 30, 2026, up 7.8% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI KWR FY2025

Stable sales conceal a 2025 profit squeeze: higher operating costs and leverage weakened earnings despite resilient gross economics.

Gross margin stayed around 36.0%, yet operating margin nearly collapsed in FY2025, showing that pressure below production costs—not just demand—drove the earnings deterioration. Cash conversion also softened: operating cash flow was $136M against free cash flow of $81M, meaning near-break-even accounting still produced cash, but reinvestment absorbed a meaningful portion.

Revenue moved from $1.84B in FY2024 to $1.89B in FY2025, so the profit decline was not primarily a volume shock. Operating income fell from $195M to $53M while overhead continued rising, concentrating the damage below gross profit.

The balance sheet became more leveraged: debt-to-equity rose from 0.5x in FY2024 to 0.6x in FY2025, reversing part of the earlier deleveraging. Short-term coverage remained comfortable at a 2.4x current ratio, separating increased long-term leverage from immediate liquidity pressure.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity CashFlow Returns 44 / 100
Financial Health Score 44/100

Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →

Health score ≠ stock price. This rates the quality of Quaker Houghton's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability
55

Quaker Houghton has an operating margin of 2.8%, meaning the company retains $3 of operating profit per $100 of revenue. This results in a moderate score of 55/100, indicating healthy but not exceptional operating efficiency. This is down from 10.6% the prior year.

Growth
25

Quaker Houghton's revenue grew a modest 2.7% year-over-year to $1.9B. This slow but positive growth earns a score of 25/100.

Leverage
10

Quaker Houghton has elevated debt relative to equity (D/E of 0.61), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 10/100, reflecting increased financial risk.

Liquidity
69

With a current ratio of 2.42, Quaker Houghton holds $2.42 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 69/100.

Cash Flow
56

Quaker Houghton has a free cash flow margin of 4.3%, earning a moderate score of 56/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns
51

Quaker Houghton posts a -0.2% return on equity (ROE), meaning it loses less than $1 for every $100 of shareholders' equity. This results in a returns score of 51/100. This is down from 8.6% the prior year.

Altman Z-Score Grey Zone
2.40

Quaker Houghton scores 2.40, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Neutral
4/9

Quaker Houghton passes 4 of 9 financial strength tests. 2 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Mixed
N/A

Quaker Houghton reported a net loss of $2.5M while generating $136.5M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal.

Interest Coverage At Risk
1.24x

Quaker Houghton earns $1.24 in operating income for every $1 of interest expense ($53.0M vs $42.6M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.

Key Financial Metrics

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Earnings & Revenue

Revenue
$532.5M
YoY+10.2%
QoQ+10.8%
5Y CAGR+4.1%
10Y CAGR+11.0%

Quaker Houghton generated $532.5M in revenue in Q2 2026. This represents an increase of 10.2% from the same quarter a year earlier. Against the prior quarter it is up 10.8%.

EBITDA
$58.2M
YoY+262.6%
QoQ+13.5%

Quaker Houghton's EBITDA was $58.2M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 262.6% from the same quarter a year earlier. Against the prior quarter it is up 13.5%.

Net Income
$26.8M
YoY+140.3%
QoQ+36.4%
5Y CAGR-4.4%
10Y CAGR+6.0%

Quaker Houghton reported $26.8M in net income in Q2 2026. This represents an increase of 140.3% from the same quarter a year earlier. Against the prior quarter it is up 36.4%.

EPS (Diluted)
$1.55
YoY+141.0%
QoQ+37.2%
5Y CAGR-3.8%
10Y CAGR+3.2%

Quaker Houghton earned $1.55 per diluted share (EPS) in Q2 2026. This represents an increase of 141.0% from the same quarter a year earlier. Against the prior quarter it is up 37.2%.

Cash & Balance Sheet

Free Cash Flow
$19.1M
YoY-43.2%
QoQ+377.9%
5Y CAGR+353.1%
10Y CAGR-1.8%

Quaker Houghton generated $19.1M in free cash flow in Q2 2026, representing cash available after capex. This represents a decrease of 43.2% from the same quarter a year earlier. Against the prior quarter it is up 377.9%.

Cash & Debt
$155.1M
YoY-23.2%
QoQ-8.6%
5Y CAGR+1.3%
10Y CAGR+4.9%

Quaker Houghton held $155.1M in cash against $857.8M in long-term debt as of Q2 2026.

Dividends Per Share
$0.51
YoY+4.7%
QoQ0.0%
5Y CAGR+5.2%
10Y CAGR+3.9%

Quaker Houghton paid $0.51 per share in dividends in Q2 2026. This represents an increase of 4.7% from the same quarter a year earlier. It is unchanged from the prior quarter.

Shares Outstanding
17M
YoY-1.1%
QoQ-0.9%
5Y CAGR-0.8%
10Y CAGR+2.6%

Quaker Houghton had 17M shares outstanding in Q2 2026. This represents a decrease of 1.1% from the same quarter a year earlier. Against the prior quarter it is down 0.9%.

Margins & Returns

Gross Margin
35.5%
YoY0.0pp
QoQ-1.3pp
5Y change+0.1pp
10Y change-2.7pp

Quaker Houghton's gross margin was 35.5% in Q2 2026, indicating the percentage of revenue retained after direct costs. That is unchanged from the same quarter a year earlier. Against the prior quarter it is down 1.3 percentage points.

Operating Margin
7.6%
YoY+18.5pp
QoQ+0.6pp
5Y change-1.3pp
10Y change-4.5pp

Quaker Houghton's operating margin was 7.6% in Q2 2026, reflecting core business profitability. This is up 18.5 percentage points from the same quarter a year earlier. Against the prior quarter it is up 0.6 percentage points.

Net Margin
5.0%
YoY+18.8pp
QoQ+1.0pp
5Y change-2.7pp
10Y change-3.0pp

Quaker Houghton's net profit margin was 5.0% in Q2 2026, showing the share of revenue converted to profit. This is up 18.8 percentage points from the same quarter a year earlier. Against the prior quarter it is up 1.0 percentage points.

Return on Equity
1.9%
YoY+6.9pp
QoQ+0.5pp
5Y change-0.5pp
10Y change-1.9pp

Quaker Houghton's ROE was 1.9% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 6.9 percentage points from the same quarter a year earlier. Against the prior quarter it is up 0.5 percentage points.

Capital Allocation

Capital Expenditures
$10.4M
YoY+30.2%
QoQ-2.8%
5Y CAGR+27.8%
10Y CAGR+16.7%

Quaker Houghton invested $10.4M in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 30.2% from the same quarter a year earlier. Against the prior quarter it is down 2.8%.

R&D Spending

Not reported for Q2 2026.

Share Buybacks

Not reported for Q2 2026.

KWR Income Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

KWR quarterly income statement
MetricQ2'2610-QQ1'2610-QQ4'2510-QQ3'2510-QQ2'2510-QQ1'2510-QQ4'2410-KQ3'2410-Q
Revenue$532.5M+10.2%$480.5M+8.5%$468.5M+5.5%$493.8M+6.8%$483.4M+4.3%$442.9M-5.7%$444.1M-4.9%$462.3M-5.8%
Cost of Revenue$343.3M+10.2%$303.7M+7.8%$303.0M+5.2%$313.0M+8.0%$311.7M+8.3%$281.7M-2.3%$287.9M-2.7%$289.7M-5.7%
Gross Profit$189.2M+10.2%$176.7M+9.6%$165.5M+6.0%$180.9M+4.8%$171.7M-2.3%$161.3M-11.2%$156.2M-8.7%$172.5M-5.9%
SG&A Expenses$140.5M+11.0%$135.8M+14.0%$130.3M+3.9%$126.5M+7.0%$126.6M+8.3%$119.0M-4.1%$125.4M+3.4%$118.2M-3.7%
Operating Income$40.6M+177.3%$33.6M+21.6%$31.2M+7.6%$46.6M-9.8%-$52.5M-189.8%$27.6M-50.3%$29.0M-39.9%$51.7M-13.1%
EBITDA$58.2M+262.6%$51.3M+20.8%$48.5M+10.1%$63.7M-5.0%-$35.8M-148.5%$42.5M-39.9%$44.0M$67.0M
Interest Expense$9.5M-23.6%$9.5M+3.6%$10.4M+8.2%$10.6M-1.7%$12.4M+7.8%$9.2M-18.5%$9.6M-2.0%$10.8M-14.5%
Income Tax$11.2M+104.2%$7.1M-5.3%$2.3M-73.7%$9.3M-23.8%$5.5M-65.3%$7.5M-39.7%$8.8M-52.5%$12.2M-10.5%
Net Income$26.8M+140.3%$19.7M+52.2%$20.7M+45.9%$30.5M-5.8%-$66.6M-290.9%$12.9M-63.3%$14.2M-29.8%$32.3M-3.9%
EPS (Basic)$1.56+141.3%$1.13+54.8%$1.18+47.5%$1.75-3.3%-$3.78-294.8%$0.73-62.8%$0.80-28.6%$1.81-3.2%
EPS (Diluted)$1.55+141.0%$1.13+54.8%$1.18+45.7%$1.75-3.3%-$3.78-294.8%$0.73-62.6%$0.81-27.7%$1.81-3.2%
Diluted Shares (Avg)17M-2.2%17M-1.5%N/A17M-2.5%18M-1.9%18M-1.5%N/A18M-0.3%

Not reported in any period shown, so not listed: R&D Expenses.

KWR Balance Sheet

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

KWR quarterly balance sheet
MetricQ2'2610-QQ1'2610-QQ4'2510-QQ3'2510-QQ2'2510-QQ1'2510-QQ4'2410-KQ3'2410-Q
Total Assets$2.9B+0.1%$2.8B+5.2%$2.8B+7.2%$2.8B+3.0%$2.8B+6.6%$2.7B-1.8%$2.6B-3.8%$2.7B+0.1%
Current Assets$991.0M+1.7%$952.6M+4.4%$921.2M+5.1%$946.0M+0.4%$974.1M+6.0%$912.4M-2.2%$876.4M-5.5%$941.9M-2.5%
Cash & Equivalents$155.1M-23.2%$169.7M-8.9%$179.8M-4.8%$172.0M-18.9%$201.9M+7.1%$186.2M-4.9%$188.9M-2.9%$212.1M+6.9%
Short-Term Investments$0$0$0$0$0$0$0$0
InventoryN/AN/A$265.8M+16.8%N/AN/AN/A$227.5M-2.7%N/A
Accounts Receivable$463.6M+6.0%$441.2M+5.4%$417.2M+4.3%$436.2M+3.2%$437.4M+3.2%$418.7M-4.9%$400.1M-10.1%$422.7M-5.3%
Long-Term Investments$0$0$1.8M$0$0$0$0$0
Goodwill$503.7M+0.3%$502.0M-4.3%$501.7M-3.3%$501.8M-5.8%$502.4M-2.9%$524.7M+0.4%$518.9M+1.2%$532.5M+5.6%
Total Liabilities$1.5B-2.2%$1.4B+11.3%$1.4B+13.1%$1.4B+12.4%$1.5B+17.8%$1.3B-3.4%$1.3B-5.5%$1.3B-7.3%
Current Liabilities$403.4M+6.1%$388.5M+4.2%$380.2M+0.1%$383.4M+3.2%$380.1M+8.6%$372.8M+6.5%$379.8M+3.3%$371.3M+5.5%
Non-Current Liabilities$1.1B-5.0%$1.0B+14.3%$1.0B+18.8%$1.1B+16.2%$1.1B+21.2%$905.1M-6.9%$876.7M-8.8%$918.1M-11.7%
Long-Term Debt$857.8M-4.5%$837.1M+19.8%$834.9M+24.7%$838.5M+19.7%$898.0M+27.6%$698.8M-5.6%$669.6M-8.4%$700.6M-13.0%
Total Equity$1.4B+2.6%$1.4B-0.7%$1.4B+1.4%$1.4B-5.7%$1.3B-3.8%$1.4B-0.4%$1.4B-2.2%$1.4B+7.9%
Retained Earnings$625.6M+11.1%$607.5M-4.8%$596.6M-5.9%$584.7M-6.9%$563.1M-6.8%$638.1M+10.5%$633.7M+15.1%$628.1M+16.6%

KWR Cash Flow Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

KWR quarterly cash flow statement
MetricQ2'2610-QQ1'2610-QQ4'2510-QQ3'2510-QQ2'2510-QQ1'2510-QQ4'2410-KQ3'2410-Q
Operating Cash Flow$29.5M-29.1%$3.8M+224.1%$46.5M-26.2%$51.4M-24.4%$41.6M-10.2%-$3.0M-111.2%$63.1M-20.7%$68.0M-18.5%
Depreciation & Amortization$17.6M+5.5%$17.7M+19.3%$17.3M+14.9%$17.0M+11.1%$16.7M+8.2%$14.9M-2.0%$15.0M$15.3M
Stock-Based Compensation$3.7M0.0%$3.2M-0.4%N/A$3.5M-18.6%$3.7M-11.9%$3.2M-18.1%N/A$4.3M+13.9%
Capital Expenditures$10.4M+30.2%$10.7M-13.6%$22.2M-1.0%$13.3M+62.4%$8.0M+19.4%$12.3M+176.4%$22.5M+72.7%$8.2M-6.2%
Free Cash Flow$19.1M-43.2%-$6.9M+55.3%$24.3M-40.1%$38.0M-36.3%$33.6M-15.2%-$15.4M-167.5%$40.6M-39.0%$59.8M-19.9%
Investing Cash Flow-$9.2M+94.5%-$9.5M+28.9%-$21.1M-2.5%-$12.3M+45.6%-$167.3M-4163.7%-$13.4M+54.2%-$20.6M-1026.4%-$22.6M-158.4%
Financing Cash Flow-$35.1M-125.7%-$3.4M-131.2%-$17.4M+68.7%-$68.3M-146.5%$136.6M+397.9%$11.0M+66.9%-$55.7M+36.8%-$27.7M+55.0%
Dividends Paid$8.8M+2.9%$8.8M+2.7%$8.8M+1.9%$8.4M+3.5%$8.6M+4.7%$8.6M+4.7%$8.6M+5.6%$8.2M+4.1%
Share BuybacksN/AN/A$5.0M-80.9%$3.8M-74.9%N/AN/A$26.3M$15.1M

KWR Financial Ratios

Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

KWR quarterly financial ratios
MetricQ2'2610-QQ1'2610-QQ4'2510-QQ3'2510-QQ2'2510-QQ1'2510-QQ4'2410-KQ3'2410-Q
Gross Margin35.5%0.0pp36.8%+0.4pp35.3%+0.2pp36.6%-0.7pp35.5%-2.4pp36.4%-2.2pp35.2%-1.5pp37.3%0.0pp
Operating Margin7.6%+18.5pp7.0%+0.8pp6.7%+0.1pp9.4%-1.8pp-10.9%-23.5pp6.2%-5.6pp6.5%-3.8pp11.2%-0.9pp
Net Margin5.0%+18.8pp4.1%+1.2pp4.4%+1.2pp6.2%-0.8pp-13.8%-21.3pp2.9%-4.6pp3.2%-1.1pp7.0%+0.1pp
Return on Equity1.9%+6.9pp1.4%+0.5pp1.5%+0.5pp2.2%0.0pp-5.0%-7.5pp0.9%-1.6pp1.1%-0.4pp2.2%-0.3pp
Return on Assets0.9%+3.3pp0.7%+0.2pp0.7%+0.2pp1.1%-0.1pp-2.3%-3.7pp0.5%-0.8pp0.5%-0.2pp1.2%-0.1pp
Current Ratio2.46-0.1x2.450.0x2.42+0.1x2.47-0.1x2.56-0.1x2.45-0.2x2.31-0.2x2.54-0.2x
Debt-to-Equity0.620.0x0.61+0.1x0.61+0.1x0.61+0.1x0.67+0.2x0.500.0x0.490.0x0.48-0.1x
Asset Turnover0.190.0x0.170.0x0.170.0x0.180.0x0.170.0x0.170.0x0.170.0x0.170.0x
FCF Margin3.6%-3.4pp-1.4%+2.0pp5.2%-3.9pp7.7%-5.2pp7.0%-1.6pp-3.5%-8.3pp9.1%-5.1pp12.9%-2.3pp

Similar Companies

Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.

Company Fiscal year Revenue Net income Net margin Market cap Health score
Quaker Houghton KWR FY2025 $1.9B -$2.5M -0.1% $2.7B 44/100
Ashland Inc. ASH FY2025 $1.8B -$845.0M -46.3% $3.2B 37/100
The Chemours Company CC FY2025 $5.8B -$386.0M -6.7% $2.0B 16/100
Ingevity Corporation NGVT FY2025 $1.2B -$167.1M -14.3% $2.4B 58/100
Innospec Inc. IOSP FY2025 $1.8B $116.6M 6.6% $2.4B 51/100
Minerals Technologies Inc MTX FY2025 $2.1B -$18.4M -0.9% $2.0B 50/100

Frequently Asked Questions

What is Quaker Houghton's annual revenue?

Quaker Houghton (KWR) reported $1.9B in total revenue for fiscal year 2025. This represents a 2.7% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Quaker Houghton's revenue growing?

Quaker Houghton (KWR) revenue grew by 2.7% year-over-year, from $1.8B to $1.9B in fiscal year 2025.

Is Quaker Houghton profitable?

No, Quaker Houghton (KWR) reported a net income of -$2.5M in fiscal year 2025, with a net profit margin of -0.1%.

Quaker Houghton (KWR) reported diluted earnings per share of -$0.14 for fiscal year 2025. This represents a -102.2% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Quaker Houghton (KWR) had EBITDA of $118.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

As of fiscal year 2025, Quaker Houghton (KWR) had $179.8M in cash and equivalents against $834.9M in long-term debt.

Quaker Houghton (KWR) had a gross margin of 36.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

Quaker Houghton (KWR) had an operating margin of 2.8% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Quaker Houghton (KWR) had a net profit margin of -0.1% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Yes, Quaker Houghton (KWR) paid $1.99 per share in dividends during fiscal year 2025.

Quaker Houghton (KWR) has a return on equity of -0.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

Quaker Houghton (KWR) generated $80.6M in free cash flow during fiscal year 2025. This represents a -50.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Quaker Houghton (KWR) generated $136.5M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Quaker Houghton (KWR) had $2.8B in total assets as of fiscal year 2025, including both current and long-term assets.

Quaker Houghton (KWR) invested $55.9M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Quaker Houghton (KWR) invested $60.7M in research and development during fiscal year 2025.

Yes, Quaker Houghton (KWR) spent $41.5M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

Quaker Houghton (KWR) had 17M shares outstanding as of fiscal year 2025.

Quaker Houghton (KWR) had a current ratio of 2.42 as of fiscal year 2025, which is generally considered healthy.

Quaker Houghton (KWR) had a debt-to-equity ratio of 0.61 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Quaker Houghton (KWR) had a return on assets of -0.1% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Quaker Houghton (KWR) trades at 27.5x earnings, its market capitalization divided by net income of $97.7M net income, trailing 12 months to June 30, 2026. The market capitalization is $2.7B as of Oct 10, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

Quaker Houghton (KWR) trades at 1.4x sales, its market capitalization divided by revenue of $2.0B revenue, trailing 12 months to June 30, 2026. The market capitalization is $2.7B as of Oct 10, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

Quaker Houghton (KWR) has an Altman Z-Score of 2.40, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

Quaker Houghton (KWR) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Quaker Houghton (KWR) reported a net loss of $2.5M while generating $136.5M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Quaker Houghton (KWR) has an interest coverage ratio of 1.24x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

Quaker Houghton (KWR) scores 44 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.

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