Ingevity Corp (NGVT)

Current 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
Total current assets US$ in thousands 493,200 636,800 685,800 669,200 658,600 734,500 764,400 716,300 683,300 645,100 677,700 732,800 724,900 720,300 669,600 642,400 628,700 601,000 579,700 724,500
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
Current ratio 1.87 1.76 1.92 1.90 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

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 fluctuations over the past few years, indicating changes in the company's short-term liquidity position. The ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 2, reflecting a healthy liquidity position.

From March 31, 2020, to December 31, 2021, the current ratio remained consistently above 2, ranging from 2.81 to 3.49. This suggests that the company had more than enough current assets to cover its short-term liabilities during this period.

However, beginning in March 31, 2022, the current ratio dropped significantly to 1.33, below the ideal threshold of 2. This decline may indicate potential liquidity challenges or a shift in the company's asset and liability structure.

Subsequently, the ratio showed some recovery, hovering around 2 in the following quarters, albeit with slight fluctuations. The current ratio stood at 1.87 as of December 31, 2024, indicating that Ingevity Corp may still need to manage its short-term liquidity carefully to ensure it can meet its obligations.

In conclusion, while Ingevity Corp has historically maintained a healthy current ratio above 2, the recent fluctuations in the ratio highlight the importance of monitoring the company's short-term liquidity closely to mitigate any potential liquidity risks.