Stepan Company (SCL)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 129,823 | 105,508 | 133,929 | 126,956 | 173,750 | 165,686 | 194,585 | 236,041 | 159,186 | 105,268 | 127,053 | 150,692 | 349,938 | 310,392 | 272,877 | 254,339 | 315,383 | 285,995 | 275,266 | 269,459 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | 30,212 | 30,652 | 28,285 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 607,870 | 582,077 | 642,037 | 662,744 | 670,649 | 603,245 | 638,228 | 611,062 | 500,476 | 491,065 | 464,501 | 464,089 | 416,554 | 361,166 | 319,172 | 310,158 | 339,114 | 292,963 | 299,466 | 295,448 |
| Cash ratio | 0.21 | 0.18 | 0.21 | 0.19 | 0.26 | 0.27 | 0.30 | 0.39 | 0.32 | 0.21 | 0.27 | 0.39 | 0.91 | 0.94 | 0.85 | 0.82 | 0.93 | 0.98 | 0.92 | 0.91 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($129,823K
+ $—K)
÷ $607,870K
= 0.21
The cash ratio of Stepan Co. has shown a decreasing trend over the past eight quarters, declining from 0.44 in Q1 2022 to 0.27 in Q4 2023. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has weakened over time. A cash ratio below 1 may suggest that Stepan Co. could potentially face liquidity issues in meeting its immediate obligations. It is essential for the company to closely monitor and manage its cash flow to ensure sufficient liquidity for operational needs and financial stability.
Peer comparison
Dec 31, 2023