Innospec Inc (IOSP)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 885,700 | 872,600 | 728,100 | 566,200 | 630,300 |
| Total current liabilities | US$ in thousands | 371,500 | 405,800 | 336,600 | 252,400 | 303,500 |
| Current ratio | 2.38 | 2.15 | 2.16 | 2.24 | 2.08 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $885,700K ÷ $371,500K
= 2.38
Innospec Inc's current ratio has been relatively stable over the past five years, ranging between 2.08 and 2.38. The current ratio indicates the company's ability to meet its short-term obligations with its current assets.
The upward trend from 2020 to 2023 suggests an improvement in the company's liquidity position, as it had more current assets relative to current liabilities during these years. A current ratio above 1.0 generally indicates that the company has more than enough current assets to cover its short-term liabilities.
Although the current ratio fluctuated slightly, it remained above 2.0 for most years, reflecting a healthy liquidity position for Innospec Inc. This suggests that the company has a strong ability to pay off its short-term debts and obligations in the near future. Overall, the company's current ratio has shown consistency and strength in its liquidity management over the years analyzed.
Peer comparison
Dec 31, 2023