Innospec Inc (IOSP)

Quick 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
Cash US$ in thousands 289,200 303,800 240,200 270,100 203,700 207,200 165,900 147,500 147,100 100,500 71,400 105,600 141,800 89,200 94,400 117,000 105,300 66,600 58,200 68,100
Short-term investments US$ in thousands — — — — — — — — — — — — — — — — — — — —
Receivables US$ in thousands 341,700 327,600 300,300 318,200 359,800 305,200 310,900 342,400 334,600 342,500 339,900 337,700 284,500 302,800 281,600 247,900 221,400 206,200 213,400 296,300
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
Quick ratio 1.70 1.69 1.62 1.61 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

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($289,200K + $—K + $341,700K) ÷ $371,400K
= 1.70

The quick ratio of Innospec Inc has shown a fluctuating trend over the past several periods. It started at a relatively healthy level of 1.37 as of March 31, 2020, indicating that the company had $1.37 of liquid assets available to cover each dollar of current liabilities. The ratio experienced some ups and downs throughout the following quarters but generally remained above 1, reflecting a liquidity position that could meet short-term obligations.

However, there were some periods where the quick ratio dipped slightly below 1, such as in June 30, 2022, when it dropped to 1.11. This suggests a potential strain on the company's ability to meet immediate payment obligations without relying on selling inventory or obtaining additional financing.

Overall, the quick ratio improved steadily in the subsequent quarters, reaching a peak of 1.70 by December 31, 2024, indicating a stronger liquidity position and better ability to cover short-term liabilities with liquid assets. This positive trend suggests that Innospec Inc has been managing its short-term obligations effectively and maintaining a healthy liquidity position over the analyzed period.