Sotera Health Co (SHC)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,100,441 | 1,120,477 | 1,098,186 | 1,076,874 | 1,049,288 | 990,639 | 976,166 | 987,523 | 1,003,687 | 993,346 | 970,806 | 956,084 | 931,478 | 907,074 | 880,938 | 842,106 | 818,158 | 794,798 | 790,092 | 771,767 |
| Total current assets | US$ in thousands | 526,037 | 563,613 | 497,677 | 487,179 | 557,244 | 519,646 | 546,692 | 923,799 | 645,010 | 420,734 | 398,681 | 371,560 | 345,961 | 337,305 | 401,105 | 328,367 | 315,015 | 308,505 | 276,850 | 68,166 |
| Total current liabilities | US$ in thousands | 191,002 | 195,537 | 169,633 | 152,340 | 230,654 | 200,594 | 200,330 | 600,149 | 791,567 | 140,031 | 142,021 | 143,851 | 161,161 | 133,606 | 148,792 | 138,019 | 140,598 | 144,695 | 132,361 | 132,361 |
| Working capital turnover | 3.28 | 3.04 | 3.35 | 3.22 | 3.21 | 3.10 | 2.82 | 3.05 | — | 3.54 | 3.78 | 4.20 | 5.04 | 4.45 | 3.49 | 4.42 | 4.69 | 4.85 | 5.47 | — |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,100,441K ÷ ($526,037K – $191,002K)
= 3.28
The working capital turnover ratio for Sotera Health Co shows the efficiency of the company in utilizing its working capital to generate sales. A higher turnover ratio indicates that the company is effectively using its working capital to support its operations and sales activities. On the other hand, a lower turnover ratio may suggest inefficiency in managing working capital.
Based on the provided data, Sotera Health Co's working capital turnover has fluctuated over the periods presented. From June 2020 to December 2021, the company experienced a decreasing trend in the working capital turnover ratio, indicating a decline in the efficiency of working capital utilization during these periods.
However, there was a slight improvement in the turnover ratio in March 2022 to June 2022, before a decrease in the following periods until December 2024. The figures ranged from a high of 5.47 in June 2020 to a low of 2.82 in June 2023.
Overall, the trend in Sotera Health Co's working capital turnover ratio suggests some fluctuations in the efficiency of working capital management. Further analysis and comparison with industry benchmarks may be needed to fully understand the company's performance in this aspect.
Peer comparison
Dec 31, 2024