Innospec Inc (IOSP)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 203,700 | 147,100 | 141,800 | 105,300 | 75,700 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 359,800 | 334,600 | 284,500 | 221,400 | 292,000 |
| Total current liabilities | US$ in thousands | 371,500 | 405,800 | 336,600 | 252,400 | 303,500 |
| Quick ratio | 1.52 | 1.19 | 1.27 | 1.29 | 1.21 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($203,700K
+ $—K
+ $359,800K)
÷ $371,500K
= 1.52
The quick ratio of Innospec Inc has shown fluctuations over the past five years, ranging from 1.23 to 1.58. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term liabilities.
In 2023, the quick ratio improved to 1.58, indicating an increase in the company's ability to cover its short-term obligations with its liquid assets compared to the previous year. This could be a positive sign of improved liquidity and financial health.
In contrast, the quick ratio decreased to 1.23 in 2022 from the previous year's 1.34, which may suggest a slight weakening in the company's ability to meet short-term obligations. However, a quick ratio above 1 still indicates that the company can cover its short-term liabilities with its current liquid assets.
Overall, the trend in the quick ratio of Innospec Inc shows some variability, but the company has generally maintained a healthy level of liquidity over the years, which is crucial for meeting short-term financial obligations.
Peer comparison
Dec 31, 2023