Ingevity Corp (NGVT)

Cash 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 and cash equivalents US$ in thousands 68,000 135,500 107,400 88,500 95,900 84,500 68,000 77,900 76,700 72,300 131,300 222,600 275,400 269,400 233,300 237,800 257,700 198,200 177,600 302,700
Short-term investments US$ in thousands — — — — — — 99,400 98,900 — — — — — 75,000 74,000 74,000 73,000 100 100 100
Total current liabilities US$ in thousands 264,100 360,800 357,800 351,700 362,900 305,100 311,100 278,800 303,500 290,300 267,200 551,700 268,900 247,600 232,800 224,500 223,400 178,900 187,900 207,700
Cash ratio 0.26 0.38 0.30 0.25 0.26 0.28 0.54 0.63 0.25 0.25 0.49 0.40 1.02 1.39 1.32 1.39 1.48 1.11 0.95 1.46

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 indicates the company's ability to cover its short-term liabilities using its cash and cash equivalents. Ingevity Corp's cash ratio fluctuated over the period under observation. The ratio ranged from a high of 1.48 in December 2020 to a low of 0.25 in September 2022, indicating varying levels of liquidity during this time. It is important to note that a higher cash ratio is generally favorable as it signifies a stronger ability to meet short-term obligations without relying on external financing. Ingevity Corp's cash ratio showed a declining trend in recent periods, which may suggest a potential risk in terms of liquidity management. However, further analysis in conjunction with other financial indicators is essential to fully evaluate the company's financial health.