Ingredion Incorporated (INGR)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.92 | 1.97 | 1.92 | 1.80 | 1.76 | 1.68 | 1.72 | 1.82 | 1.78 | 1.88 | 2.55 | 1.89 | 1.82 | 2.54 | 2.20 | 2.34 | 2.23 | 2.45 | 2.48 | 2.41 |
| Quick ratio | 0.95 | 1.03 | 0.95 | 0.89 | 0.88 | 0.87 | 0.93 | 1.02 | 0.97 | 1.07 | 1.53 | 1.16 | 1.15 | 1.54 | 1.49 | 1.36 | 1.29 | 1.49 | 1.47 | 1.41 |
| Cash ratio | 0.23 | 0.20 | 0.15 | 0.12 | 0.13 | 0.15 | 0.17 | 0.19 | 0.22 | 0.30 | 0.50 | 0.42 | 0.46 | 0.58 | 0.82 | 0.30 | 0.28 | 0.47 | 0.34 | 0.29 |
Ingredion Inc's liquidity ratios demonstrate a generally stable and healthy liquidity position over the past eight quarters. The current ratio has consistently been above 1, indicating that the company has more than enough current assets to cover its short-term liabilities. The ratio has shown a slight fluctuation but has generally remained strong, with a peak of 1.97 in Q3 2023.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also reflects a strong liquidity position. The ratio has been above 1 for most quarters, indicating the company's ability to meet its short-term obligations without relying on inventory liquidation. Despite some variability, the quick ratio has remained relatively stable, with the lowest value of 0.91 in Q4 2022.
The cash ratio, which focuses solely on the most liquid asset, cash, also demonstrates Ingredion Inc's ability to cover its current liabilities with cash on hand. The ratio has shown some variability, reaching its highest value of 0.38 in Q4 2023 and its lowest value of 0.15 in Q1 2023. However, the overall trend suggests that the company has maintained a sufficient level of cash to meet its short-term obligations.
Overall, Ingredion Inc's liquidity ratios indicate a robust liquidity position, with the company being well-equipped to meet its short-term financial obligations.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 95.06 | 144.41 | 149.92 | 156.13 | 105.39 | 152.50 | 151.73 | 153.65 | 83.90 | 129.68 | 133.07 | 127.54 | 85.46 | 120.23 | 114.66 | 121.73 | 86.89 | 156.92 | 157.41 | 155.49 |
The cash conversion cycle of Ingredion Inc has displayed some fluctuations over the past eight quarters. In Q1 2023, the company's cash conversion cycle was recorded at 156.96 days, reflecting a prolonged period for the company to convert its investments in inventory and other resources into cash flows from sales.
During Q4 2022, Ingredion Inc managed to reduce its cash conversion cycle to 105.77 days, indicating a more efficient management of working capital compared to the following quarters.
The company experienced a temporary spike in its cash conversion cycle in Q3 2023, reaching 145.24 days, potentially indicating delays in collecting receivables or increased investment in inventory.
Overall, Ingredion Inc should continue to monitor and manage its cash conversion cycle effectively to optimize working capital efficiency and ensure liquidity for sustained operations and growth.