Stericycle Inc (SRCL)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 35,300 | 56,000 | 55,600 | 53,300 | 34,700 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 718,000 | 621,900 | 731,700 | 697,100 | 756,900 |
| Cash ratio | 0.05 | 0.09 | 0.08 | 0.08 | 0.05 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($35,300K
+ $—K)
÷ $718,000K
= 0.05
The cash ratio of Stericycle Inc. has been fluctuating over the past five years, ranging from 0.16 to 0.25. The cash ratio represents the company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
In 2023, the cash ratio of Stericycle Inc. decreased to 0.16 from 0.23 in 2022, indicating a decrease in the company's ability to cover its short-term liabilities with its available cash and cash equivalents. This decline may raise concerns about the company's liquidity position.
Comparing the 2023 cash ratio to previous years, it is lower than in 2020 and 2019, which were 0.25 and 0.21, respectively. This suggests a possible deterioration in the company's liquidity position over the years.
Overall, the decreasing trend in the cash ratio over the past two years may indicate that Stericycle Inc. could be facing challenges in managing its cash resources efficiently and warrant a closer examination of its liquidity management strategies.
Peer comparison
Dec 31, 2023