NewMarket Corporation (NEU)
Cash 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 and cash equivalents | US$ in thousands | 77,476 | 80,310 | 87,632 | 117,066 | 111,936 | 102,560 | 130,923 | 70,115 | 68,712 | 71,972 | 79,491 | 84,550 | 83,304 | 59,613 | 153,864 | 522,405 | 125,172 | 117,701 | 102,064 | 178,662 |
| Short-term investments | US$ in thousands | — | — | — | — | -371,493 | — | — | — | 0 | 0 | 0 | 0 | 375,918 | 378,902 | 376,295 | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 374,478 | 401,953 | 419,516 | 390,794 | 364,164 | 332,204 | 349,038 | 358,496 | 423,887 | 426,135 | 446,634 | 411,699 | 725,087 | 391,397 | 372,125 | 335,853 | 312,455 | 308,899 | 233,983 | 312,912 |
| Cash ratio | 0.21 | 0.20 | 0.21 | 0.30 | -0.71 | 0.31 | 0.38 | 0.20 | 0.16 | 0.17 | 0.18 | 0.21 | 0.63 | 1.12 | 1.42 | 1.56 | 0.40 | 0.38 | 0.44 | 0.57 |
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 past few years, showing varying levels of liquidity. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
From March 2020 to June 2021, the cash ratio increased steadily, indicating improving liquidity and the company's ability to meet its short-term obligations comfortably. However, there was a significant spike in the cash ratio in March 2021 and June 2021, suggesting a temporary surge in cash holdings relative to liabilities.
Subsequently, the cash ratio declined gradually from September 2021 to March 2023, indicating a potential decrease in liquidity. The cash ratio turned negative in December 2023, which may be a cause for concern as it implies that the company's cash and cash equivalents are not sufficient to cover its short-term liabilities.
In the following periods, the cash ratio recovered slightly but remained relatively low compared to earlier periods. This downward trend in liquidity from September 2021 to December 2024 may require further investigation into the company's cash management practices and financial health.
Peer comparison
Dec 31, 2024