NewMarket Corporation (NEU)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	1,039,570	1,192,120	1,388,170	898,078	879,398
Total current liabilities	US$ in thousands	364,164	423,887	725,087	312,455	308,895
Current ratio		2.85	2.81	1.91	2.87	2.85

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,039,570K ÷ $364,164K
= 2.85

The current ratio of NewMarket Corp. has shown fluctuations over the past five years. In 2023, the company's current ratio stands at 2.85, indicating that for every dollar of current liabilities, the company has $2.85 of current assets available to cover those obligations.

Compared to the previous years, the current ratio has remained relatively stable, with minor variations observed. In 2022, the current ratio was slightly lower at 2.81, while in 2021, there was a notable decrease to 1.91, indicating a potential strain on the company's short-term liquidity.

The increase in the current ratio in 2023 can be seen as a positive sign, suggesting that the company has improved its ability to meet its short-term financial obligations. However, it is essential to note that a current ratio of 2.85 may also indicate that the company is holding excess current assets that could be more effectively utilized elsewhere in the business.

Overall, the trend in NewMarket Corp.'s current ratio shows some volatility, emphasizing the importance of closely monitoring the company's liquidity position and managing its current assets and liabilities efficiently to ensure financial stability and growth.