Innospec Inc (IOSP)
Cash ratio
| 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 and cash equivalents | US$ in thousands | 203,700 | 207,200 | 165,900 | 147,500 | 147,100 | 100,500 | 71,400 | 105,600 | 141,800 | 89,200 | 94,400 | 117,000 | 105,300 | 66,600 | 58,200 | 68,100 | 75,700 | 110,300 | 106,100 | 123,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 371,500 | 344,200 | 364,900 | 381,600 | 405,800 | 381,400 | 369,200 | 352,300 | 336,600 | 308,300 | 291,000 | 274,300 | 252,400 | 229,800 | 219,200 | 266,100 | 303,500 | 296,700 | 303,700 | 300,000 |
| Cash ratio | 0.55 | 0.60 | 0.45 | 0.39 | 0.36 | 0.26 | 0.19 | 0.30 | 0.42 | 0.29 | 0.32 | 0.43 | 0.42 | 0.29 | 0.27 | 0.26 | 0.25 | 0.37 | 0.35 | 0.41 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($203,700K
+ $—K)
÷ $371,500K
= 0.55
The cash ratio of Innospec Inc has shown a fluctuating trend over the past eight quarters, ranging from 0.26 to 0.66. The ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents.
At the end of Q4 2023, the cash ratio stood at 0.61, reflecting a moderate ability to cover its short-term obligations with cash on hand. This marks an improvement compared to the previous quarter, where the ratio was 0.66. Furthermore, the current ratio is higher than the ratios reported in Q1 and Q2 of 2023, indicating an improvement in the company's liquidity position.
The lowest cash ratio in the period under review was reported in Q2 2022 at 0.26, indicating a weaker ability to cover short-term liabilities with cash. However, the company managed to augment its liquidity position in subsequent quarters.
Overall, the cash ratio of Innospec Inc has displayed variability, with fluctuations suggesting changes in the company's cash position and liquidity management. It is essential for stakeholders to closely monitor these fluctuations to assess the company's short-term financial health and its ability to meet its immediate financial obligations.
Peer comparison
Dec 31, 2023