Ingevity Corp (NGVT)

Liquidity ratios

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
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
Quick ratio 0.26 0.37 0.30 0.25 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 1.11 0.95 1.46
Cash ratio 0.26 0.38 0.30 0.25 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 1.11 0.95 1.46

The current ratio of Ingevity Corp has shown fluctuations over the years but generally indicates a strong ability to cover its short-term obligations with a high level of current assets relative to current liabilities. However, there has been a recent decrease in the current ratio, suggesting a potential decrease in liquidity.

The quick ratio, or acid-test ratio, has also experienced variability but generally indicates a company's ability to meet short-term obligations with its most liquid assets. The trend in the quick ratio also shows a recent decline, indicating potential challenges in meeting short-term obligations without relying on inventory.

The cash ratio, which focuses on the most liquid assets, has generally been lower than the current and quick ratios. This ratio provides a more conservative view of liquidity by excluding inventory and other less liquid current assets. Similar to the current and quick ratios, the cash ratio has decreased recently, signaling a potential strain on the company's immediate cash solvency.

Overall, while Ingevity Corp has historically demonstrated strong liquidity positions, the recent declines in all three ratios suggest a need for careful monitoring of its ability to meet short-term obligations with the existing level of liquid assets.

Additional liquidity measure

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
Cash conversion cycle days 28.92 30.74 29.98 37.73 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

The cash conversion cycle of Ingevity Corp has shown some fluctuations over the years. The company's cash conversion cycle, which measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, ranged from a high of 78.28 days on December 31, 2020, to a low of 28.92 days on December 31, 2024.

A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital and convert its investments into cash quickly, which can be a positive signal of operational efficiency. Ingevity Corp has shown improvements in its cash conversion cycle in recent periods, with a decreasing trend observed from December 31, 2022 to December 31, 2024.

Overall, monitoring the cash conversion cycle can provide insights into the company's liquidity and operational effectiveness, as well as its ability to manage its working capital efficiently. Ingevity Corp's management of its cash conversion cycle suggests improvements in working capital management and operational efficiency over the analyzed period.