Ingevity Corp (NGVT)

Quick 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
Cash US$ in thousands 68,000 135,500 107,400 88,500 95,900 84,500 68,000 77,900 76,700 72,300 131,300 222,600 275,400 269,400 233,300 237,800 257,700 198,200 177,600 302,700
Short-term investments US$ in thousands — — — — — — 99,400 98,900 — — — — — 75,000 74,000 74,000 73,000 100 100 100
Receivables US$ in thousands 1,800 -400 -900 -1,200 4,700 -500 -2,100 -500 4,900 -2,300 -2,000 -2,000 600 — — — 151,600 — — —
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
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

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 fluctuations over the past few years. It started at a relatively healthy level of 1.46 in March 2020, indicating that the company had $1.46 of liquid assets available to cover each dollar of current liabilities. However, the ratio decreased to 0.95 in June 2020, suggesting a potential liquidity strain.

The quick ratio improved to 2.16 by December 2020, signaling a significant increase in the company's ability to meet its short-term obligations with liquid assets. The ratio then fluctuated around the 1.30 range for the next few quarters, indicating a reasonable liquidity position.

However, starting from March 2022, the quick ratio declined significantly to 0.25 by March 2024, implying a potential liquidity risk for the company. Although there were slight fluctuations thereafter, the ratio remained below 1.00, indicating that Ingevity Corp may have challenges in meeting its short-term obligations with its current liquid assets.

Overall, the trend in the quick ratio suggests that Ingevity Corp has experienced fluctuations in its liquidity position in recent years, indicating potential challenges in covering its short-term liabilities with liquid assets. Further analysis and monitoring of the company's liquidity management may be necessary to address these concerns.