STERIS plc (STE)

Short-term

Turnover ratios

STERIS plc's Inventory turnover has shown a declining trend over the years, dropping from 5.60 in March 2021 to 4.30 in March 2024, signaling a decrease in the efficiency of managing inventory. However, there was a slight improvement in 2025, as the data is not available.

The Receivables turnover ratio has also fluctuated, reaching its peak at 5.74 in March 2022 but then decreasing to 5.10 in March 2024. This may indicate variability in the collection of receivables from customers.

On the other hand, the Payables turnover ratio has been relatively stable, with a slight dip in 2023 compared to the previous and subsequent years. This suggests that the company is managing its trade payables consistently over the years.

The Working Capital turnover has seen a significant decline over the period, dropping from 4.90 in March 2021 to 2.65 in March 2024. This may indicate that the company's working capital is not being efficiently utilized to generate sales.

Overall, the analysis of STERIS plc's activity ratios reveals mixed performance in managing inventory, receivables, payables, and working capital turnover, indicating areas where the company may need to focus on improving efficiency and effectiveness in its operational activities.

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Average number of days

The days of inventory on hand (DOH) for STERIS plc have shown an increasing trend over the years, from 65.18 days as of March 31, 2021, to 84.83 days as of March 31, 2024. This indicates that the company is taking longer to turn its inventory into sales, which could suggest either excess inventory levels or challenges in selling products efficiently.

In contrast, the days of sales outstanding (DSO) have fluctuated for STERIS plc, with a decrease from 71.58 days as of March 31, 2021, to 63.61 days as of March 31, 2022, followed by a slight increase to 74.69 days as of March 31, 2023. This metric reflects the average number of days it takes the company to collect revenue after a sale, with lower DSO values generally viewed favorably due to quicker cash conversion.

The number of days of payables for STERIS plc has also varied, with a notable increase from 32.47 days as of March 31, 2021, to 39.94 days as of March 31, 2023, before decreasing to 31.66 days as of March 31, 2024. A higher number of days of payables indicates that the company is taking longer to pay its suppliers, which could be a strategy to manage cash flow or negotiate better payment terms.

Overall, analyzing these activity ratios can provide insights into how efficiently STERIS plc is managing its inventory, collecting receivables, and managing payables, which are crucial aspects of its working capital management and operational efficiency.

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Long-term

The fixed asset turnover ratio for STERIS plc has shown a slight increase over the years, from 2.52 in March 31, 2021, to 2.63 in March 31, 2022, and further to 2.66 in March 31, 2023. This indicates that the company is generating more sales relative to its investment in fixed assets. However, the data for March 31, 2024, and March 31, 2025, is not available for analysis.

On the other hand, the total asset turnover ratio for STERIS plc has fluctuated over the years. It was 0.47 in March 31, 2021, but decreased to 0.40 in March 31, 2022, before slightly improving to 0.42 in March 31, 2023, and further to 0.46 in March 31, 2024. Unfortunately, the data for March 31, 2025, is not available.

Overall, the fixed asset turnover indicates an improvement in the efficiency of utilizing fixed assets to generate sales, while the total asset turnover has shown some volatility in the company's ability to generate sales relative to its total assets. Tracking these ratios over time can provide insights into STERIS plc's operational efficiency and asset utilization.