Ingevity Corp (NGVT)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 68,000 95,900 76,700 275,400 257,700
Short-term investments US$ in thousands — — — — 200
Total current liabilities US$ in thousands 264,100 362,900 303,500 268,900 223,400
Cash ratio 0.26 0.26 0.25 1.02 1.15

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($68,000K + $—K) ÷ $264,100K
= 0.26

The cash ratio of Ingevity Corp has shown a decreasing trend over the past five years, declining from 1.15 in December 2020 to 0.26 in both December 2023 and December 2024. This indicates that the company may have a lower level of cash and cash equivalents relative to its current liabilities in recent years. A cash ratio of 0.26 means that for every dollar of current liabilities, Ingevity Corp has $0.26 in cash and cash equivalents available to cover these obligations. While the cash ratio has decreased significantly, it is important to further examine the overall liquidity position of the company and its ability to meet short-term financial commitments effectively.