Sotera Health Co (SHC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 277,242 | 296,407 | 396,294 | 106,924 | 102,454 |
| Short-term investments | US$ in thousands | — | 715 | 660 | 623 | 673 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 191,002 | 230,654 | 791,567 | 161,161 | 140,598 |
| Quick ratio | 1.45 | 1.29 | 0.50 | 0.67 | 0.73 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($277,242K
+ $—K
+ $—K)
÷ $191,002K
= 1.45
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered satisfactory as it indicates the company can cover its current liabilities with its quick assets.
For Sotera Health Co, the quick ratio has displayed fluctuating trends over the years. As of December 31, 2020, the quick ratio stood at 0.73, indicating that the company may have struggled to meet its short-term obligations with its readily available assets. This ratio decreased further to 0.67 by December 31, 2021, potentially signaling liquidity challenges.
However, there was a significant improvement in the quick ratio on December 31, 2023, where it soared to 1.29, indicating a strong ability to cover current liabilities with quick assets. This improvement was sustained as of December 31, 2024, with the ratio further increasing to 1.45, demonstrating continued strength in liquidity.
Overall, the trend in Sotera Health Co's quick ratio shows a mix of fluctuations and improvements, with a notable enhancement in liquidity position in the later years. It is essential for the company to continue monitoring and managing its liquidity effectively to ensure its ongoing ability to meet short-term obligations.
Peer comparison
Dec 31, 2024