Sotera Health Co (SHC)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 277,242 | 306,738 | 247,758 | 262,820 | 301,654 | 252,534 | 270,490 | 660,180 | 396,294 | 163,975 | 139,564 | 121,440 | 106,924 | 114,912 | 156,217 | 108,016 | 102,454 | 108,276 | 86,195 | -68,166 |
| Short-term investments | US$ in thousands | 1,623 | 1,744 | 501 | 416 | 715 | 412 | 422 | 396 | 660 | 760 | 647 | 493 | 623 | 1,018 | 834 | 797 | 13,457 | 651 | 622 | 136,332 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 191,002 | 195,537 | 169,633 | 152,340 | 230,654 | 200,594 | 200,330 | 600,149 | 791,567 | 140,031 | 142,021 | 143,851 | 161,161 | 133,606 | 148,792 | 138,019 | 140,598 | 144,695 | 132,361 | 132,361 |
| Quick ratio | 1.46 | 1.58 | 1.46 | 1.73 | 1.31 | 1.26 | 1.35 | 1.10 | 0.50 | 1.18 | 0.99 | 0.85 | 0.67 | 0.87 | 1.06 | 0.79 | 0.82 | 0.75 | 0.66 | 0.52 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($277,242K
+ $1,623K
+ $—K)
÷ $191,002K
= 1.46
The quick ratio of Sotera Health Co has shown fluctuations over the period under consideration. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, started at a relatively low level of 0.52 as of March 31, 2020. Subsequently, the ratio showed an increasing trend, reaching its peak at 1.73 as of March 31, 2024.
Key observations include:
1. The company's quick ratio improved consistently from June 2021 to June 2023, indicating a strengthening ability to cover short-term liabilities with liquid assets during this period.
2. There was a notable decline in the quick ratio from June 2024 to December 2024, suggesting a potential decrease in the company's liquidity position or an increase in short-term obligations during this period.
3. The quick ratio surpassed 1 in several periods, which indicates that the company had more than enough liquid assets to cover its short-term liabilities, signifying a healthy liquidity position.
Overall, the trend in Sotera Health Co's quick ratio indicates fluctuations in its ability to meet short-term obligations with liquid assets, demonstrating the importance of continuous monitoring and management of liquidity levels to ensure financial stability.
Peer comparison
Dec 31, 2024