Sotera Health Co (SHC)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 526,037 | 557,244 | 645,010 | 345,961 | 315,015 |
| Total current liabilities | US$ in thousands | 191,002 | 230,654 | 791,567 | 161,161 | 140,598 |
| Current ratio | 2.75 | 2.42 | 0.81 | 2.15 | 2.24 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $526,037K ÷ $191,002K
= 2.75
The current ratio of Sotera Health Co has exhibited varying trends over the years as follows: in 2020, the ratio was 2.24, indicating that the company had $2.24 in current assets to cover each dollar of current liabilities. By the end of 2021, the ratio slightly decreased to 2.15, still representing a healthy liquidity position. However, in 2022, there was a significant decline in the current ratio to 0.81, suggesting a potential liquidity issue or an imbalance between current assets and liabilities.
The situation improved in 2023 when the current ratio increased to 2.42, surpassing the previous years' levels and indicating a more favorable liquidity position. Moreover, by the end of 2024, the current ratio further strengthened to 2.75, demonstrating the company's ability to meet its short-term obligations comfortably with the available current assets.
Overall, the fluctuation in Sotera Health Co's current ratio highlights the importance of monitoring liquidity levels, as it provides insights into the company's short-term financial health and ability to manage immediate financial obligations effectively.
Peer comparison
Dec 31, 2024