Sotera Health Co (SHC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,100,440 | 1,049,290 | 1,003,690 | 931,478 | 818,158 |
| Total current assets | US$ in thousands | 526,037 | 557,244 | 645,010 | 345,961 | 315,015 |
| Total current liabilities | US$ in thousands | 191,002 | 230,654 | 791,567 | 161,161 | 140,598 |
| Working capital turnover | 3.28 | 3.21 | — | 5.04 | 4.69 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,100,440K ÷ ($526,037K – $191,002K)
= 3.28
Sotera Health Co's working capital turnover has shown variability over the years. In 2020, the working capital turnover was 4.69, which increased to 5.04 in 2021, indicating a more efficient utilization of working capital to generate revenue during that period. However, the data for 2022 is unavailable.
In 2023, the working capital turnover decreased significantly to 3.21, suggesting a lower efficiency in managing working capital to generate sales within that timeframe. The trend continued in 2024, with a slightly higher turnover of 3.28, but still lower than the levels seen in 2020 and 2021.
Overall, the fluctuating pattern in working capital turnover indicates varying efficiencies in utilizing working capital to support the company's operations and generate revenue over the years. This metric should be closely monitored to ensure optimal management of working capital in the future.
Peer comparison
Dec 31, 2024