Ingevity Corp (NGVT)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 493,200 658,600 683,300 724,900 628,700
Total current liabilities US$ in thousands 264,100 362,900 303,500 268,900 223,400
Current ratio 1.87 1.81 2.25 2.70 2.81

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $493,200K ÷ $264,100K
= 1.87

The current ratio of Ingevity Corp has exhibited a relatively stable trend from 2020 to 2022, indicating the company's ability to cover its short-term obligations with its current assets. However, there was a noticeable decline in the current ratio from 2022 to 2023, suggesting a potential strain on liquidity and ability to meet short-term obligations. This decline continued into 2024, albeit showing a slight improvement compared to the previous year. Overall, while the company's current ratio has remained above 1, indicating a healthy liquidity position, the decreasing trend from 2022 onwards warrants further monitoring to assess the company's ability to effectively manage its short-term financial obligations.