Sotera Health Co (SHC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 296,407 | 395,214 | 106,917 |
| Short-term investments | US$ in thousands | — | 660 | 623 |
| Total current liabilities | US$ in thousands | 230,654 | 791,567 | 161,161 |
| Cash ratio | 1.29 | 0.50 | 0.67 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($296,407K
+ $—K)
÷ $230,654K
= 1.29
The cash ratio of Sotera Health Co has shown fluctuations over the past five years. The ratio was 0.93 in 2019, indicating that the company had less cash to cover its short-term liabilities. However, the ratio improved in 2020 to 1.19 and continued to increase in 2021 to 1.11, suggesting a stronger ability to cover its short-term obligations with available cash.
In 2022, there was a substantial increase in the cash ratio to 0.60, which could raise concerns about the company's liquidity position. However, in 2023, the ratio significantly improved to 1.52, indicating that Sotera Health Co had a higher level of cash available to meet its short-term financial commitments.
Overall, the upward trend in the cash ratio from 2019 to 2023 indicates an improvement in Sotera Health Co's liquidity position and its ability to cover short-term liabilities with readily available cash. However, it is essential to monitor the trend consistently to ensure the company maintains adequate liquidity for its operational needs.
Peer comparison
Dec 31, 2023