Stericycle Inc (SRCL)
Quick ratio
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Cash | US$ in thousands | 35,300 | 56,000 | 55,600 | 53,300 | 34,700 |
Short-term investments | US$ in thousands | — | — | — | — | — |
Receivables | US$ in thousands | 553,900 | 414,500 | 420,400 | 380,700 | 544,300 |
Total current liabilities | US$ in thousands | 718,000 | 621,900 | 731,700 | 697,100 | 756,900 |
Quick ratio | 0.82 | 0.76 | 0.65 | 0.62 | 0.76 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($35,300K
+ $—K
+ $553,900K)
÷ $718,000K
= 0.82
The quick ratio measures a company's ability to meet its short-term debt obligations with its most liquid assets. In the case of Stericycle Inc., the quick ratio has fluctuated over the past five years, ranging from 0.79 to 0.94.
In 2023, the quick ratio stands at 0.94, indicating that the company has $0.94 in liquid assets for every $1 of current liabilities. This shows an improvement compared to the previous year, where the quick ratio was 0.90.
The quick ratio in 2021 and 2020 was consistent at 0.79, suggesting that Stericycle Inc. had $0.79 of liquid assets available for every $1 of current liabilities during both years. This could indicate potential liquidity concerns as the quick ratio fell below 1, which is generally considered a healthy level.
In 2019, the quick ratio improved to 0.93, showing that the company had $0.93 in liquid assets for every $1 of current liabilities.
Overall, while Stericycle Inc.'s quick ratio has shown some variability over the past five years, the recent improvement in 2023 suggests a better ability to cover short-term obligations with liquid assets. It would be important to monitor this ratio in conjunction with other liquidity metrics to assess the company's financial health accurately.
Peer comparison
Dec 31, 2023