There's Been No Shortage Of Growth Recently For Quaker Chemical's (NYSE:KWR) Returns On Capital

What are the early trends we should look for to identify a stock that could multiply in value over the long term? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So when we looked at Quaker Chemical (NYSE:KWR) and its trend of ROCE, we really liked what we saw.We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. What Is Return On Capital Employed (ROCE)? For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Quaker Chemical: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.074 = US$181m ÷ (US$2.8b - US$383m) (Based on the trailing twelve months to September 2025). So, Quaker Chemical has an ROCE of 7.4%. In absolute terms, that's a low return and it also under-performs the Chemicals industry average of 9.5%. See our latest analysis for Quaker Chemical NYSE:KWR Return on Capital Employed December 19th 2025 Above you can see how the current ROCE for Quaker Chemical compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Quaker Chemical . The Trend Of ROCE Quaker Chemical has not disappointed with their ROCE growth. The figures show that over the last five years, ROCE has grown 74% whilst employing roughly the same amount of capital. So it's likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn't changed considerably. It's worth looking deeper into this though because while it's great that the business is more efficient, it might also mean that going forward the areas to invest internally for the organic growth are lacking. Our Take On Quaker Chemical's ROCE To bring it all together, Quaker Chemical has done well to increase the returns it's generating from its capital employed. Given the stock has declined 40% in the last five years, this could be a good investment if the valuation and other metrics are also appealing. That being the case, research into the company's current valuation metrics and future prospects seems fitting. One more thing to note, we've identified 1 warning sign with Quaker Chemical and understanding this should be part of your investment process. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech