NewMarket Corporation (NEU)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	77,476	111,936	68,712	83,304	125,172
Short-term investments	US$ in thousands	—	-371,493	0	375,918	0
Total current liabilities	US$ in thousands	374,478	364,164	423,887	725,087	312,455
Cash ratio		0.21	-0.71	0.16	0.63	0.40

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($77,476K + $—K) ÷ $374,478K
= 0.21

The cash ratio of NewMarket Corporation has fluctuated over the years.

- As of December 31, 2020, the cash ratio was 0.40, indicating that the company had sufficient cash to cover 40% of its current liabilities.
- By December 31, 2021, the cash ratio improved to 0.63, suggesting an increase in the company's ability to cover its short-term obligations with cash on hand.
- However, the cash ratio decreased significantly to 0.16 by December 31, 2022, which may signal a potential liquidity challenge for the company.
- The cash ratio further deteriorated to -0.71 on December 31, 2023, indicating that the company's cash on hand was insufficient to cover its current liabilities.
- Though there was a slight improvement with a cash ratio of 0.21 on December 31, 2024, the ratio still remains relatively low compared to previous years.

Overall, the trend in the cash ratio of NewMarket Corporation shows fluctuations, with a notable decline in 2022 and 2023. This suggests the need for the company to closely monitor its liquidity position and implement strategies to ensure it has adequate cash reserves to meet its short-term obligations.