Stepan Company (SCL)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 99,665 | 129,823 | 173,750 | 159,186 | 349,938 |
| Short-term investments | US$ in thousands | — | — | — | — | 30,652 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 669,034 | 607,870 | 670,649 | 500,476 | 416,554 |
| Quick ratio | 0.15 | 0.21 | 0.26 | 0.32 | 0.91 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($99,665K
+ $—K
+ $—K)
÷ $669,034K
= 0.15
The quick ratio of Stepan Company has exhibited a declining trend over the past five years, starting at 0.91 on December 31, 2020, and decreasing to 0.15 by December 31, 2024. This indicates a significant decrease in the company's ability to cover its current liabilities with its most liquid assets. A quick ratio below 1 suggests that the company may have difficulty meeting its short-term obligations without having to sell inventory or other current assets. Stepan Company should assess its current asset management and liquidity position to improve its ability to meet its short-term financial obligations going forward.
Peer comparison
Dec 31, 2024