Stepan Company (SCL)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 810,429 | 851,883 | 1,044,800 | 913,368 | 905,651 |
| Total current liabilities | US$ in thousands | 669,034 | 607,870 | 670,649 | 500,476 | 416,554 |
| Current ratio | 1.21 | 1.40 | 1.56 | 1.82 | 2.17 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $810,429K ÷ $669,034K
= 1.21
The current ratio of Stepan Company has shown a declining trend over the past five years. Starting at 2.17 on December 31, 2020, the current ratio decreased to 1.82 by December 31, 2021, and continued to decrease to 1.56 by December 31, 2022. This downward trajectory continued as the current ratio further dropped to 1.40 on December 31, 2023, and reached 1.21 by December 31, 2024.
A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign for short-term financial health. However, the declining trend in Stepan Company's current ratio suggests a potential strain on its ability to meet short-term obligations with its current assets. It would be prudent for stakeholders to closely monitor this trend and assess the company's liquidity position in the upcoming periods.
Peer comparison
Dec 31, 2024