Stepan Company (SCL)
Quick 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 | 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 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick 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
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 shown some fluctuations over the years. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.
From March 31, 2020, to December 31, 2020, the quick ratio was relatively stable, ranging between 0.82 and 0.94, indicating that the company had a sufficient level of liquid assets to cover its current liabilities during that period.
However, from March 31, 2021, to September 30, 2022, the quick ratio experienced a significant decline, dropping to as low as 0.21 by September 30, 2021. This suggests that the company may have faced challenges in meeting its short-term obligations with its readily available assets during this period.
Subsequently, from March 31, 2023, to December 31, 2024, the quick ratio remained below 0.3, indicating that Stepan Company continued to have limited liquid assets compared to its current liabilities.
Overall, the decreasing trend in the quick ratio over the years raises some concerns about the company's liquidity position and its ability to promptly settle its short-term obligations. Management should closely monitor the quick ratio and take appropriate measures to improve liquidity and strengthen the company's financial position.
Peer comparison
Dec 31, 2024