Innospec Inc (IOSP)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 630,300 | 673,300 | 650,500 | 683,600 |
| 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 |
| Current ratio | 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 | 2.08 | 2.27 | 2.14 | 2.28 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $885,700K ÷ $371,500K
= 2.38
The current ratio of Innospec Inc has ranged between 2.15 and 2.51 over the past eight quarters. This ratio indicates the company's ability to meet its short-term financial obligations with its current assets.
A current ratio above 1.0 generally suggests that a company has more current assets than current liabilities, providing a cushion to cover its short-term obligations. Innospec Inc's current ratio has consistently remained above 2.0, indicating a strong liquidity position and suggesting that the company has a comfortable margin to cover its short-term liabilities.
The upward trend in the current ratio from Q1 2022 to Q3 2023 reflects an improvement in the company's liquidity position. However, the slight decline in Q4 2023 compared to the previous quarter does not raise significant concerns, as the current ratio is still well above 2.0.
Overall, based on the current ratio trend and values, Innospec Inc appears to have a strong liquidity position and is likely well-equipped to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023