Ingredion Incorporated (INGR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 401,000 | 236,000 | 328,000 | 665,000 | 264,000 |
| Short-term investments | US$ in thousands | 8,000 | 3,000 | 4,000 | — | 4,000 |
| Receivables | US$ in thousands | 1,279,000 | 1,411,000 | 1,130,000 | 1,011,000 | 977,000 |
| Total current liabilities | US$ in thousands | 1,772,000 | 1,882,000 | 1,512,000 | 1,458,000 | 967,000 |
| Quick ratio | 0.95 | 0.88 | 0.97 | 1.15 | 1.29 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($401,000K
+ $8,000K
+ $1,279,000K)
÷ $1,772,000K
= 0.95
The quick ratio of Ingredion Inc has shown some fluctuations over the past five years. In 2023, the quick ratio stood at 1.10, indicating that the company had $1.10 of liquid assets available to cover each dollar of current liabilities. This represents an improvement compared to the previous year's ratio of 0.91, suggesting an increase in liquidity.
However, when comparing the quick ratio to the figures from 2021 (1.01), 2020 (1.19), and 2019 (1.34), it is evident that the company's liquidity position has varied over time. The quick ratio was relatively higher in 2019 and 2020, indicating a stronger ability to meet short-term obligations with quick assets.
Overall, a quick ratio above 1.0 typically suggests that a company possesses an adequate level of liquid assets to cover its current liabilities. While the latest ratio of 1.10 indicates a relatively healthy liquidity position for Ingredion Inc in 2023, it is important for investors and analysts to consider the trend in conjunction with other financial metrics to assess the company's overall financial health.
Peer comparison
Dec 31, 2023