Innospec Inc (IOSP)

Current ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Total current assets US$ in thousands 956,600 965,600 876,800 912,900 885,700 863,700 854,500 875,000 872,600 846,400 799,300 778,600 728,100 683,000 643,100 607,600 566,200 528,800 532,900 626,700
Total current liabilities US$ in thousands 371,400 373,100 332,800 364,900 371,500 344,200 364,900 381,600 405,800 381,400 369,200 352,300 336,600 308,300 291,000 274,300 252,400 229,800 219,200 266,100
Current ratio 2.58 2.59 2.63 2.50 2.38 2.51 2.34 2.29 2.15 2.22 2.16 2.21 2.16 2.22 2.21 2.22 2.24 2.30 2.43 2.36

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 been relatively stable over the past few years, ranging between 2.15 and 2.63. This indicates that the company has a healthy level of current assets to cover its current liabilities. A current ratio above 1 suggests that Innospec Inc can meet its short-term obligations using its current assets.

A current ratio above 2 is generally seen as favorable as it indicates that the company has a strong ability to cover its short-term liabilities. However, a ratio that is too high may suggest that the company is not efficiently using its current assets.

Innospec Inc's current ratio has been consistently above 2, which is a positive sign of its liquidity and ability to meet its short-term financial obligations. The slight fluctuations in the ratio are normal and do not raise significant concerns about the company's short-term financial health. It is important to continue monitoring this ratio in conjunction with other financial indicators to gain a comprehensive understanding of Innospec Inc's overall financial position.