Stepan Company (SCL)
Cash 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 and cash equivalents | US$ in thousands | 99,665 | 147,280 | 124,708 | 125,775 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 30,212 | 30,652 | 28,285 | — | — |
| Total current liabilities | US$ in thousands | 669,034 | 721,293 | 655,195 | 628,853 | 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 |
| Cash ratio | 0.15 | 0.20 | 0.19 | 0.20 | 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 |
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 exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The cash ratio represents the proportion of cash and cash equivalents to current liabilities, serving as an indicator of a company's ability to cover its short-term obligations with its readily available cash.
Initially, from March 31, 2020, to September 30, 2021, the cash ratio showed a relatively stable trend, hovering around 0.80 to 0.94. This indicates that Stepan Company had a healthy level of cash reserves to cover its short-term liabilities during this period.
However, a noticeable decline in the cash ratio was observed from March 31, 2021, reaching a low of 0.21 by September 30, 2021. This sharp decrease suggests a potential liquidity strain on the company during that period, as its cash position relative to current liabilities declined significantly.
Following this, the cash ratio fluctuated within a range of 0.15 to 0.39 from December 31, 2021, to December 31, 2024. These fluctuations might indicate varying levels of cash management efficiency or changes in the company's liquidity position over this period.
Overall, the trend in Stepan Company's cash ratio highlights the importance of closely monitoring a company's liquidity position, as changes in this ratio can provide insights into its ability to meet short-term financial obligations with available cash resources.
Peer comparison
Dec 31, 2024