Stepan Company (SCL)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 99,665 | 129,823 | 173,750 | 159,186 | 349,938 |
| Short-term investments | US$ in thousands | — | — | — | — | 30,652 |
| Total current liabilities | US$ in thousands | 669,034 | 607,870 | 670,649 | 500,476 | 416,554 |
| Cash ratio | 0.15 | 0.21 | 0.26 | 0.32 | 0.91 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($99,665K
+ $—K)
÷ $669,034K
= 0.15
The cash ratio of Stepan Company has shown a declining trend over the past five years, decreasing from 0.91 in December 2020 to 0.15 in December 2024. This indicates a decrease in the company's ability to cover its short-term liabilities with its cash and cash equivalents. A declining cash ratio could signify potential liquidity challenges for the company, as it may not have enough readily available cash to meet its immediate financial obligations. It is essential for the company to closely monitor its cash management strategies and ensure sufficient liquid assets to navigate any unforeseen financial disruptions.
Peer comparison
Dec 31, 2024