Ingevity Corp (NGVT)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 95,900 | 76,700 | 275,400 | 257,700 | 56,500 |
| Short-term investments | US$ in thousands | — | — | — | 200 | 400 |
| Receivables | US$ in thousands | 4,700 | 4,900 | 600 | 151,600 | 154,500 |
| Total current liabilities | US$ in thousands | 362,900 | 303,500 | 268,900 | 223,400 | 215,500 |
| Quick ratio | 0.28 | 0.27 | 1.03 | 1.83 | 0.98 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($95,900K
+ $—K
+ $4,700K)
÷ $362,900K
= 0.28
The quick ratio of Ingevity Corp has shown fluctuations over the past five years. In 2023, the quick ratio decreased to 0.96 from 1.13 in 2022. This decline indicates a reduction in the company's ability to cover its short-term liabilities with its most liquid assets.
Comparing to the previous years, the quick ratio was significantly higher in 2021 at 1.80 and 2020 at 1.97, indicating a stronger liquidity position during those periods. It dropped back to 1.13 in 2019, similar to the level seen in 2022.
Overall, the downward trend in the quick ratio from 2022 to 2023 raises concerns about Ingevity Corp's short-term liquidity position. Further investigation and analysis of the company's current assets and liabilities are recommended to understand the underlying reasons for this decrease.
Peer comparison
Dec 31, 2023