Innospec Inc (IOSP)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 203,700 | 207,200 | 165,900 | 147,500 | 147,100 | 100,500 | 71,400 | 105,600 | 141,800 | 89,200 | 94,400 | 117,000 | 105,300 | 66,600 | 58,200 | 68,100 | 75,700 | 110,300 | 106,100 | 123,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 359,800 | 305,200 | 310,900 | 342,400 | 334,600 | 342,500 | 339,900 | 337,700 | 284,500 | 302,800 | 281,600 | 247,900 | 221,400 | 206,200 | 213,400 | 296,300 | 292,000 | 296,500 | 280,000 | 296,700 |
| 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 |
| 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 |
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 exhibited a fluctuating trend over the past eight quarters. It ranged from a low of 1.18 in Q2 2022 to a high of 1.58 in Q4 2023. This ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term liabilities. Ideally, a quick ratio of 1 or higher is considered healthy.
Innospec's quick ratio has generally been above 1, indicating a strong ability to meet its short-term financial commitments. The slight fluctuations in the ratio over the quarters may be attributed to changes in the company's current assets and liabilities composition.
Overall, the trend in the quick ratio suggests that Innospec Inc has maintained a sound liquidity position, which is essential for financial stability and meeting short-term obligations. However, further analysis along with other financial ratios and factors is recommended for a comprehensive assessment of the company's financial health.
Peer comparison
Dec 31, 2023