The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Stepan Co's current ratio for the quarter that ended in Sep. 2024 was 1.27.
Stepan Co has a current ratio of 1.27. It generally indicates good short-term financial strength.
The historical rank and industry rank for Stepan Co's Current Ratio or its related term are showing as below:
SCL'
s Current Ratio Range Over the Past 10 Years
Min: 1.27 Med: 2.39 Max: 2.89
Current: 1.27
During the past 13 years, Stepan Co's highest Current Ratio was 2.89. The lowest was 1.27. And the median was 2.39.
SCL's Current Ratio is ranked worse than 75.35% of 1562
companies
in the Chemicals industry
Industry Median: 1.93
vs SCL: 1.27
Stepan Co Current Ratio Historical Data
The historical data trend for Stepan Co's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Stepan Co's Current Ratio
For the Specialty Chemicals subindustry, Stepan Co's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Stepan Co's Current Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Stepan Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Stepan Co's Current Ratio falls into.
Stepan Co Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Stepan Co's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Stepan Co (NYSE:SCL) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Stepan Co Current Ratio Related Terms
Thank you for viewing the detailed overview of Stepan Co's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Stepan Co manufactures and sells a variety of chemicals and chemical-based products. The company organizes itself into three segments based on product type. The surfactants segment, which generates the majority of revenue, sells cleaning agents used in detergents, shampoos, body wash, fabric softeners, toothpastes, and other personal-care products. Surfactants are chemical agents that affect the interaction between two surfaces. The polymers segment sells polyurethane used to manufacture rigid foam for thermal insulation, as well as phthalic anhydride used to make plastic components for the construction, automotive, and boating industries. The specialty products segment sells chemicals used in food and flavoring. Majority of Stepan's revenue comes from the United States.
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