Innospec Inc (IOSP)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 956,600 885,700 872,600 728,100 566,200
Total current liabilities US$ in thousands 371,400 371,500 405,800 336,600 252,400
Current ratio 2.58 2.38 2.15 2.16 2.24

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $956,600K ÷ $371,400K
= 2.58

The current ratio of Innospec Inc has shown a consistent trend over the past five years. Starting at 2.24 in December 2020, it slightly decreased to 2.16 by December 2021 and further to 2.15 by December 2022. However, there was a notable improvement in December 2023 with the current ratio increasing to 2.38 and continuing to strengthen to 2.58 by December 2024.

Overall, Innospec Inc's current ratio has generally remained above 2, indicating the company's ability to cover its short-term obligations with its current assets. The upward trend in the later years suggests an improvement in the company's liquidity position and ability to meet its current liabilities comfortably. This trend may indicate effective management of working capital and a relatively stable financial position over the years.