Sotera Health Co (SHC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Total current assets | US$ in thousands | 557,244 | 645,010 | 345,961 |
| Total current liabilities | US$ in thousands | 230,654 | 791,567 | 161,161 |
| Current ratio | 2.42 | 0.81 | 2.15 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $557,244K ÷ $230,654K
= 2.42
The current ratio of Sotera Health Co has shown fluctuations over the past five years. In 2019, the current ratio stood at 2.04, indicating that the company had $2.04 in current assets for every $1 of current liabilities. The ratio increased to 2.24 in 2020, signaling an improvement in the company's short-term liquidity position.
However, in 2021, the current ratio decreased to 2.15, although it remained above 2, indicating that the company still had more than enough current assets to cover its current liabilities. The ratio then experienced a significant drop to 0.81 in 2022, suggesting a potential liquidity issue or an imbalance between current assets and current liabilities.
In 2023, the current ratio rebounded to 2.42, demonstrating a strong improvement in the company's short-term liquidity position compared to the previous year. Overall, while there have been fluctuations in the current ratio of Sotera Health Co, the latest figure of 2.42 suggests a healthier liquidity position, with the company having more than twice the current assets to cover its current liabilities.
Peer comparison
Dec 31, 2023