Sotera Health Co (SHC)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 296,407 | 244,959 | 262,700 | 647,948 | 395,214 | 163,975 | 139,564 | 121,440 | 106,917 | 114,912 | 156,217 | 108,009 |
| Short-term investments | US$ in thousands | — | 412 | 422 | 396 | 660 | 760 | 647 | — | — | — | 9,373 | 9,227 |
| Total current liabilities | US$ in thousands | 230,654 | 200,594 | 200,330 | 600,149 | 791,567 | 140,031 | 142,021 | 143,851 | 161,161 | 133,606 | 148,792 | 138,019 |
| Cash ratio | 1.29 | 1.22 | 1.31 | 1.08 | 0.50 | 1.18 | 0.99 | 0.84 | 0.66 | 0.86 | 1.11 | 0.85 |
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 for Sotera Health Co has shown some fluctuations over the past eight quarters. In Q4 2023, the cash ratio stood at 1.52, indicating that the company had $1.52 in cash for every dollar of current liabilities. This was a decrease from the previous quarter (Q3 2023) where the ratio was 1.64.
Looking further back, the trend shows a consistent improvement in the cash ratio from Q1 2022 to Q2 2023, reaching a peak of 1.75 in Q3 2022. However, there was a significant drop in Q4 2022 to 0.60 before the ratio started to recover.
Overall, a cash ratio above 1 implies that Sotera Health Co has sufficient cash to cover its short-term obligations. The fluctuations in the ratio may indicate changes in the company's liquidity position and its ability to meet its short-term financial commitments. Further analysis of the company's cash management practices and overall financial health would be necessary to provide a more comprehensive assessment.
Peer comparison
Dec 31, 2023