Stericycle Inc (SRCL)

Liquidity ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Current ratio	0.94	0.90	0.85	0.97	0.90	1.02	0.96	0.92	0.79	0.83	0.81	0.80	0.79	0.82	0.90	1.47	0.93	0.94	1.04	1.02
Quick ratio	0.82	0.76	0.71	0.83	0.76	0.86	0.83	0.77	0.65	0.67	0.69	0.65	0.62	0.65	0.63	0.55	0.76	0.75	0.83	0.83
Cash ratio	0.05	0.05	0.05	0.10	0.09	0.07	0.07	0.09	0.08	0.05	0.09	0.07	0.08	0.09	0.06	0.04	0.05	0.04	0.04	0.06

The liquidity ratios of Stericycle Inc., as reflected in the data provided, indicate the company's ability to meet its short-term financial obligations. The current ratio, which measures the company's ability to pay off its current liabilities with its current assets, has been fluctuating over the quarters but generally remains below 1, suggesting potential liquidity challenges. The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, mirrors the trend of the current ratio and also remains below 1.

The cash ratio, which indicates the company's ability to cover its current liabilities with its cash and cash equivalents, has shown some variability but generally remains below 0.5. This indicates that Stericycle Inc. may have limited immediate cash resources to meet its short-term obligations.

Overall, based on the liquidity ratios provided, Stericycle Inc. appears to face some liquidity risk, as its ability to quickly convert assets into cash to meet its short-term liabilities may be constrained. It would be important for the company to closely manage its working capital and financial resources to improve its liquidity position.

Additional liquidity measure

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash conversion cycle	days	48.69	42.30	32.39	34.07	31.24	41.13	41.69	40.90	34.59	37.08	36.65	35.74	38.53	39.35	42.76	111.22	41.40	48.90	49.57	45.82

The cash conversion cycle of Stericycle Inc. has shown variability over the past eight quarters. It measures the time it takes the company to convert its investments in inventory and other resources into cash flows from sales. A higher number indicates that the company is taking longer to sell its inventory and collect cash from customers, whereas a lower number suggests efficient management of working capital.

In the most recent quarter, Q4 2023, the cash conversion cycle increased to 28.95 days, a significant jump from the previous quarter at 19.09 days. This rise indicates that Stericycle Inc. may be facing challenges in efficiently managing its working capital, possibly due to slower inventory turnover or delays in collecting receivables.

In contrast, Q2 2023 had the lowest cash conversion cycle at 10.25 days, signaling that the company was able to quickly convert its investments into cash flows during that period. This could be attributed to effective inventory management and timely collection of receivables.

Looking at the trend over the past year, there appears to be fluctuation in the cash conversion cycle, with some quarters showing longer cycles (such as Q4 2023 and Q3 2022) and others demonstrating shorter cycles (like Q2 2023 and Q4 2022). It would be important for Stericycle Inc. to closely monitor and address the factors contributing to these fluctuations to ensure optimal working capital management and cash flow efficiency in the future.