Ingevity Corp (NGVT)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 658,600 | 734,500 | 764,400 | 716,300 | 683,300 | 645,100 | 677,700 | 732,800 | 724,900 | 720,300 | 669,600 | 642,400 | 628,700 | 601,000 | 579,700 | 724,500 | 463,200 | 499,000 | 491,600 | 455,000 |
| 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 |
| Current ratio | 1.81 | 2.41 | 2.46 | 2.57 | 2.25 | 2.22 | 2.54 | 1.33 | 2.70 | 2.91 | 2.88 | 2.86 | 2.81 | 3.36 | 3.09 | 3.49 | 2.15 | 2.39 | 2.28 | 2.29 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $658,600K ÷ $362,900K
= 1.81
Ingevity Corp's current ratio has displayed fluctuating trends over the past eight quarters. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. In Q4 2023, the current ratio was 1.81, indicating a decline from the previous quarter Q3 2023 where the ratio was 2.41. A current ratio below 2 may suggest potential difficulties in meeting short-term obligations.
The trend over the past year shows some variability, with the current ratio ranging from a low of 1.33 in Q1 2022 to a high of 2.57 in Q1 2023. Specifically, in Q2 2023 and Q3 2022, the company had a current ratio above 2.50, suggesting a strong ability to cover short-term obligations. However, this was followed by a decline in Q4 2022 and Q1 2023 but then increased in Q2 2023.
It is important for stakeholders to monitor the current ratio closely, as a ratio above 2 is generally considered healthy, while a ratio below 1 may indicate potential liquidity issues. The company should focus on managing its current assets and liabilities effectively to maintain a stable current ratio and ensure its short-term financial health.
Peer comparison
Dec 31, 2023