STERIS plc (STE)

Days of inventory on hand (DOH)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Inventory turnover		5.26	4.30	3.67	4.47	5.60
DOH	days	69.42	84.83	99.34	81.70	65.18

March 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.26
= 69.42

To analyze STERIS plc's days of inventory on hand (DOH) over the past five years:

- In March 2021, STERIS had an average inventory turnover period of 65.18 days, indicating that, on average, it takes about 65 days to sell its inventory.
- By March 2022, the DOH had increased to 81.70 days, suggesting a potential slowdown in inventory turnover.
- The trend continued in March 2023, with the DOH reaching 99.34 days, indicating a significant increase in the time it takes to convert inventory into sales.
- In March 2024, the DOH improved slightly to 84.83 days, but it remained relatively high compared to the initial period.
- Unfortunately, the data for March 2025 is unavailable (indicated as "— days"), making it challenging to assess the current state of STERIS plc's inventory management efficiency.

Overall, the increasing trend in DOH from 2021 to 2023 raises concerns about STERIS' inventory management. Higher DOH levels can tie up working capital, increase storage costs, and indicate potential issues with sales forecasting or production efficiency. Further analysis and comparison with industry benchmarks would provide additional insights into STERIS plc's inventory management performance.