Innospec Inc (IOSP)

Liquidity ratios

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
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
Quick ratio 1.52 1.49 1.31 1.28 1.19 1.16 1.11 1.26 1.27 1.27 1.29 1.33 1.29 1.19 1.24 1.37 1.21 1.37 1.27 1.40
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

Innospec Inc's liquidity ratios have shown stable trends over the past eight quarters. The current ratio has been consistently above 2, indicating that the company has more than enough current assets to cover its current liabilities. This suggests strong short-term financial health and ability to meet its short-term obligations.

The quick ratio, which excludes inventory from current assets, has also been relatively healthy, staying above 1 in most quarters. This implies that the company could cover its short-term liabilities without relying on inventory sales, which is considered a good sign of liquidity.

The cash ratio, representing the most stringent liquidity measure, has shown some variability but has generally improved over time. Although below 1 in all quarters, the upward trend indicates that the company has been increasing its cash reserves relative to its current liabilities, which can enhance its ability to meet its obligations even in the absence of other liquid assets.

Overall, the liquidity ratios of Innospec Inc suggest that the company is in a strong financial position in terms of its ability to meet short-term obligations, with a solid current ratio and an improving cash ratio.

Additional liquidity measure

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 conversion cycle days 95.70 95.03 96.50 100.95 105.68 112.75 114.65 113.38 105.53 120.48 121.51 113.26 106.37 107.03 104.29 109.96 103.55 110.69 103.33 106.01

The cash conversion cycle for Innospec Inc has shown a general decreasing trend over the past quarters, indicating an improvement in the company's efficiency in converting its investments in inventory and accounts receivable into cash. However, the cycle has seen some fluctuations within this downward trend.

In Q1 2022, the cash conversion cycle was 123.02 days, which increased to 125.79 days in Q2 2022 before reaching its peak at 124.64 days in Q3 2022. Subsequently, there was a notable improvement as the cycle decreased to 117.27 days in Q4 2022. This declining trend continued into 2023, with further reductions to 111.28 days in Q1, 107.89 days in Q2, 105.81 days in Q3, and finally settling at 104.08 days in Q4 2023.

Overall, the decreasing cash conversion cycle suggests that Innospec Inc has been managing its working capital more effectively and efficiently, which is a positive sign for the company's financial health and operational performance.