Sotera Health Co (SHC)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 33.90 | 35.65 | 41.81 | 39.01 | 38.90 | 30.64 | 34.35 | 38.09 | 30.35 | 30.53 | 33.50 | 39.35 | 48.00 | 34.06 | 33.12 | 32.08 | 33.22 | 28.41 | 29.37 | 31.97 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 33.90 | 35.65 | 41.81 | 39.01 | 38.90 | 30.64 | 34.35 | 38.09 | 30.35 | 30.53 | 33.50 | 39.35 | 48.00 | 34.06 | 33.12 | 32.08 | 33.22 | 28.41 | 29.37 | 31.97 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 33.90 + — – —
= 33.90
The cash conversion cycle of Sotera Health Co, calculated from the provided data, has fluctuated over the periods analyzed. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales of products or services.
From March 31, 2020, to June 30, 2020, the cash conversion cycle improved from 31.97 days to 29.37 days, indicating that the company became more efficient in managing its working capital during that quarter. However, by December 31, 2021, the cash conversion cycle increased substantially to 48.00 days, which may suggest challenges in inventory management or delays in collecting accounts receivable.
Subsequently, there were improvements in the cash conversion cycle observed in the following quarters up to September 30, 2024, where the cycle ranged between 30.53 days to 35.65 days. These improvements indicate that the company may have implemented better strategies in managing its cash flows, optimizing inventory levels, and collecting receivables more efficiently.
Overall, fluctuations in the cash conversion cycle of Sotera Health Co signify changes in the company's operational efficiency and liquidity management. Monitoring this metric can help assess how well the company is utilizing its resources and generating cash inflows from its operating activities.
Peer comparison
Dec 31, 2024