Ingevity Corp (NGVT)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 68,000 95,900 76,700 275,400 257,700
Short-term investments US$ in thousands — — — — 200
Receivables US$ in thousands 1,800 4,700 4,900 600 151,600
Total current liabilities US$ in thousands 264,100 362,900 303,500 268,900 223,400
Quick ratio 0.26 0.28 0.27 1.03 1.83

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($68,000K + $—K + $1,800K) ÷ $264,100K
= 0.26

The quick ratio of Ingevity Corp has shown a mixed performance over the years.

As of December 31, 2020, the quick ratio stood at a healthy 1.83, indicating that the company had sufficient liquid assets to cover its current liabilities. However, there was a noticeable decrease in the quick ratio to 1.03 by December 31, 2021, suggesting a reduction in the company's ability to meet its short-term obligations using its most liquid assets.

The trend continued to show a decline in liquidity as the quick ratio dropped significantly to 0.27 by December 31, 2022. This could raise concerns about the company's ability to quickly meet its current liabilities without relying on selling inventory.

Although there was a slight improvement in the quick ratio to 0.28 by December 31, 2023, it remained at a relatively low level, indicating ongoing liquidity challenges for Ingevity Corp.

By December 31, 2024, the quick ratio further decreased to 0.26, highlighting persistent issues in the company's ability to convert its liquid assets into cash quickly to settle its short-term obligations.

Overall, the declining trend in Ingevity Corp's quick ratio over the years suggests a potential liquidity strain that may require further monitoring and management attention to ensure the company's financial health and ability to meet its short-term obligations.