Stepan Company (SCL)
Quick 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 | 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 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 422,050 | 418,218 | 423,399 | 470,275 | 436,914 | 476,198 | 518,750 | 504,474 | 419,542 | 413,576 | 391,730 | 380,649 | 301,318 | 295,616 | 286,679 | 290,568 | 276,841 | 283,016 | 289,023 | 298,932 |
| 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 |
| Quick ratio | 0.91 | 0.90 | 0.87 | 0.90 | 0.91 | 1.06 | 1.12 | 1.21 | 1.16 | 1.06 | 1.12 | 1.21 | 1.64 | 1.76 | 1.75 | 1.76 | 1.75 | 1.94 | 1.88 | 1.92 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($129,823K
+ $—K
+ $422,050K)
÷ $607,870K
= 0.91
The quick ratio of Stepan Co. has shown some fluctuation over the past eight quarters, ranging from 0.93 to 1.27. The quick ratio is a liquidity ratio that measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of less than 1 indicates that the company may have difficulty meeting its short-term obligations without selling inventory or obtaining additional financing.
In the most recent quarter, Q4 2023, the quick ratio was 0.96, which suggests that the company may have slightly lower liquidity to cover its short-term liabilities. However, it is important to note that the quick ratio has been relatively stable around this level over the past few quarters, indicating a consistent liquidity position for the company.
The highest quick ratio was observed in Q1 2022 at 1.27, which indicates a strong ability to cover short-term obligations with liquid assets. Conversely, the lowest quick ratio in the period was 0.93 in Q2 2023, which may raise some concerns about the company's short-term liquidity position during that time.
Overall, while the quick ratio of Stepan Co. has shown some variability, it has generally remained close to 1, indicating a reasonable ability to meet short-term obligations with liquid assets. Monitoring this ratio over time can provide insights into the company's liquidity management and financial health.
Peer comparison
Dec 31, 2023