Sotera Health Co (SHC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 277,242 | 296,407 | 396,294 | 106,924 | 102,454 |
| Short-term investments | US$ in thousands | — | 715 | 660 | 623 | 673 |
| Total current liabilities | US$ in thousands | 191,002 | 230,654 | 791,567 | 161,161 | 140,598 |
| Cash ratio | 1.45 | 1.29 | 0.50 | 0.67 | 0.73 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($277,242K
+ $—K)
÷ $191,002K
= 1.45
The cash ratio of Sotera Health Co has shown a fluctuating trend over the past five years. As of December 31, 2020, the cash ratio was 0.73, indicating that the company had $0.73 in cash and cash equivalents for every $1 of current liabilities. This ratio decreased to 0.67 by the end of 2021 and further dropped to 0.50 by the end of 2022, suggesting a potential strain on the company's liquidity.
However, there was a significant improvement in the cash ratio in the following years. By December 31, 2023, the cash ratio increased to 1.29, indicating a healthier liquidity position, with the company holding $1.29 in cash and cash equivalents for every $1 of current liabilities. The trend continued positively, with the cash ratio reaching 1.45 by the end of 2024, further strengthening the company's ability to meet its short-term obligations with available cash resources.
Overall, the fluctuation in Sotera Health Co's cash ratio over the years highlights the importance of monitoring liquidity levels to ensure the company can effectively manage its short-term financial commitments.
Peer comparison
Dec 31, 2024