NewMarket Corporation (NEU)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,029,560 | 1,039,570 | 1,192,120 | 1,388,170 | 898,078 |
| Total current liabilities | US$ in thousands | 374,478 | 364,164 | 423,887 | 725,087 | 312,455 |
| Current ratio | 2.75 | 2.85 | 2.81 | 1.91 | 2.87 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,029,560K ÷ $374,478K
= 2.75
NewMarket Corporation's current ratio has exhibited some fluctuations over the past five years. The current ratio decreased from 2.87 in 2020 to 1.91 in 2021, indicating a potential liquidity concern. However, there was a notable recovery in 2022 with the current ratio improving to 2.81, and this trend continued with slight increases in 2023 and 2024 to 2.85 and 2.75, respectively.
A current ratio above 1.0 is generally considered healthy, as it suggests that the company has more current assets than current liabilities to cover its short-term obligations. Despite the fluctuations observed, NewMarket Corporation has maintained current ratios above 1.0 throughout the period, indicating a sufficient liquidity position.
It is important for stakeholders to monitor trends in the current ratio as it provides insights into the company's ability to meet its short-term financial obligations. Overall, the recent improvements in NewMarket Corporation's current ratio suggest a strengthening liquidity position, which may contribute to the company's financial stability and operational flexibility.
Peer comparison
Dec 31, 2024