NewMarket Corporation (NEU)

Cash 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 and cash equivalents	US$ in thousands	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	144,397	79,971	73,219	78,247
Short-term investments	US$ in thousands	-371,493	—	—	—	0	0	0	0	375,918	378,902	376,295	—	0	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	308,895	280,478	283,479	259,973
Cash ratio		-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	0.47	0.29	0.26	0.30

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($111,936K + $-371,493K) ÷ $364,164K
= -0.71

The cash ratio for NewMarket Corp. has shown varying levels over the past eight quarters. In Q4 2023, the cash ratio was 0.41, a slight increase from the previous quarter's 0.40. This indicates that the company had 41 cents of cash for every dollar of current liabilities in Q4 2023.

Looking back further, the cash ratio fluctuated between 0.25 and 0.48, showing some degree of volatility. It reached its lowest point of 0.25 in Q4 2022 and highest point of 0.48 in Q2 2023. A cash ratio of 0.30 in Q1 2023 indicates that the company improved its ability to cover short-term liabilities with cash compared to the previous quarter.

Overall, despite the fluctuations, the cash ratio of NewMarket Corp. has generally remained above 0.25 over the past eight quarters, suggesting that the company has maintained a reasonable level of liquidity to meet its short-term obligations. It would be important to continue monitoring the trend of the cash ratio to assess the company's liquidity position and ability to manage its short-term obligations effectively.