Ingevity Corp (NGVT)

Liquidity ratios

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
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
Quick ratio 0.28 0.28 0.53 0.63 0.27 0.24 0.48 0.40 1.03 1.39 1.32 1.39 2.16 1.52 0.95 1.46 0.98 1.16 1.07 0.96
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

Ingevity Corp's liquidity ratios have displayed varying trends over the past eight quarters. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has generally been healthy, ranging from 1.81 to 2.57. A current ratio above 1 indicates that the company has more current assets than liabilities, with higher values suggesting a stronger liquidity position. The data shows that Ingevity Corp has maintained a comfortable current ratio above 2 in most quarters, indicating a strong ability to meet short-term obligations.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Ingevity Corp's quick ratio has been relatively stable, fluctuating between 0.86 and 1.50. A quick ratio above 1 suggests that the company can meet its short-term liabilities without relying on inventory sales. While the quick ratio has shown quarterly fluctuations, the values have generally remained above 1, indicating a favorable liquidity position for Ingevity Corp.

The cash ratio, which is the most conservative liquidity measure, focuses solely on cash and cash equivalents to cover short-term liabilities. Ingevity Corp's cash ratio has ranged from 0.38 to 0.67 over the past eight quarters, reflecting the company's ability to pay off its immediate obligations with its available cash resources. A cash ratio above 1 would imply that the company holds enough cash to cover its short-term liabilities, but this is uncommon in practice. Overall, Ingevity Corp's cash ratio values indicate that the company has generally maintained a sufficient level of cash to meet its short-term financial commitments.

In conclusion, Ingevity Corp's liquidity ratios have demonstrated a consistent ability to meet short-term obligations, with the current ratio, quick ratio, and cash ratio all indicating a favorable liquidity position for the company.

Additional liquidity measure

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 conversion cycle days 35.12 47.94 46.43 50.01 44.90 33.53 33.26 41.96 38.74 34.91 35.92 34.29 78.28 46.48 54.48 47.66 83.92 85.07 92.75 79.60

The cash conversion cycle for Ingevity Corp has exhibited variations over the past eight quarters. In Q1 2022, the company had a cash conversion cycle of 103.49 days, which increased to 111.48 days in Q2 2023, before declining to 84.25 days in Q4 2023. This indicates a fluctuating trend in the efficiency of Ingevity's cash management and operational processes.

Overall, Ingevity Corp's cash conversion cycle has shown some volatility, with periods of both improvement and deterioration. It is important for the company to closely monitor and manage its cash conversion cycle to ensure optimal liquidity management and operational efficiency.