Sotera Health Co (SHC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — |
| Financial leverage ratio | 7.59 | 6.70 | 7.23 | 7.13 | 7.05 | 8.04 | 7.35 | 9.45 | 8.90 | 4.63 | 4.46 | 4.42 | 4.76 | 5.22 | 5.45 | 5.96 | 6.07 | — | — | — |
Sotera Health Co's solvency ratios indicate a consistently strong financial position over the analyzed periods. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been consistently at 0.00 or not calculable, suggesting that the company has no significant debt burden in relation to its assets and capital structure.
The Financial leverage ratio, which measures the proportion of the company's assets that are financed by debt, shows some fluctuation over the periods. However, it generally demonstrates a decreasing trend from December 31, 2020, to June 30, 2023, indicating a reduction in financial leverage and a more conservative approach to debt management. The ratio spikes significantly in December 31, 2022, but then decreases to more stable levels in subsequent periods, indicating potentially manageable financial leverage.
Overall, based on these solvency ratios, Sotera Health Co appears to have a healthy financial position with low debt levels and effective management of financial leverage, which can be indicative of a stable and sustainable business model.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.62 | 1.32 | 1.12 | 1.30 | 1.27 | -1.53 | -1.61 | -1.90 | -2.07 | 4.03 | 4.30 | 4.29 | 3.38 | 2.18 | 1.59 | 1.19 | 1.03 | 1.01 | 1.02 | 1.32 |
Sotera Health Co's interest coverage ratio has exhibited fluctuations over the reporting periods provided. The interest coverage ratio measures the company's ability to meet its interest obligations from its operating income.
- In March 2020, the interest coverage was 1.32, indicating that the company's operating income was 1.32 times the interest expense for that period.
- The ratio decreased to 1.02 in June 2020, signifying a decrease in the company's ability to cover its interest payments from its operating income.
- It further declined to 1.01 in September 2020 and slightly improved to 1.03 in December 2020.
- From March 2021 to June 2022, there was a steady increase in the interest coverage ratio, suggesting an improvement in the company's ability to pay its interest obligations.
- The ratio peaked at 4.30 in June 2022, indicating that the company's operating income was 4.30 times the interest expense, reflecting a strong ability to cover interest payments.
- However, there was a significant decline in the interest coverage ratio in the subsequent periods, dropping to negative values in December 2022, March 2023, June 2023, and September 2023, which may raise concerns about the company's ability to meet its interest payments from operating income during those periods.
- The ratio bounced back to positive values from December 2023 onwards, with values ranging from 1.27 to 1.62 in the latest reporting period of December 31, 2024.
Overall, the trend in Sotera Health Co's interest coverage ratio shows variability, with periods of strength followed by weaknesses. It is important for investors and stakeholders to monitor the company's interest coverage ratio to assess its ability to handle its interest obligations effectively.