Ingevity Corp (NGVT)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 56,500 | 75,600 | 53,300 | 38,400 |
| Short-term investments | US$ in thousands | — | — | 99,400 | 98,900 | — | — | — | — | — | 75,000 | 74,000 | 74,000 | 73,000 | 73,000 | — | — | 400 | 400 | 400 | 400 |
| Total current liabilities | US$ in thousands | 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 | 215,500 | 208,800 | 216,000 | 198,300 |
| Cash ratio | 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 | 1.52 | 0.95 | 1.46 | 0.26 | 0.36 | 0.25 | 0.20 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($95,900K
+ $—K)
÷ $362,900K
= 0.26
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. Ingevity Corp's cash ratio has fluctuated over the past eight quarters, ranging from 0.38 to 0.67.
In Q4 2023, the cash ratio was 0.46, indicating that the company had $0.46 in cash and cash equivalents for every dollar of current liabilities. This demonstrates a moderate ability to meet short-term obligations with cash on hand.
Compared to the previous quarters, the cash ratio in Q4 2023 is relatively stable, showing slight improvement from Q3 2023 (0.43). However, it is lower than the high point seen in Q2 2022 (0.67) and also below the average cash ratio observed over the eight quarters.
Overall, Ingevity Corp's cash ratio suggests that the company has maintained a reasonable level of liquidity to cover its short-term liabilities, albeit with some fluctuations. Management should continue to monitor and manage the company's cash position effectively to ensure it remains sufficient to meet its upcoming financial obligations.
Peer comparison
Dec 31, 2023