NewMarket Corporation (NEU)
Quick 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 | 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 | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($77,476K
+ $—K
+ $—K)
÷ $374,478K
= 0.21
The quick ratio of NewMarket Corporation has fluctuated significantly over the period under review. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulties meeting its short-term obligations.
From March 31, 2020, to June 30, 2022, the quick ratio of NewMarket Corporation remained below 1, indicating a potential liquidity challenge. However, in the first quarter of 2023, the quick ratio improved significantly to 0.20, suggesting a better ability to cover short-term liabilities with liquid assets. This improvement was sustained until September 30, 2023.
Unexpectedly, by the end of December 31, 2023, the quick ratio dropped sharply to -0.71, indicating potential financial strain or inaccuracies in the reported financial data. The negative quick ratio implies that the company may not have sufficient liquid assets to cover its current liabilities, which raises concerns about its financial health and ability to meet its short-term obligations.
Subsequently, by the end of December 31, 2024, the quick ratio improved to 0.21, showing a partial recovery but still remaining on the lower side. This improvement may indicate efforts to enhance liquidity, yet further observation is necessary to assess the company's overall financial stability.
In conclusion, while the quick ratio of NewMarket Corporation has shown fluctuations, it is crucial for stakeholders to closely monitor the company's liquidity position and financial management practices to ensure its ongoing ability to meet its short-term obligations.
Peer comparison
Dec 31, 2024