STERIS plc (STE)

Days of inventory on hand (DOH)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Inventory turnover		4.33	4.63	4.47	5.60	6.49
DOH	days	84.30	78.84	81.70	65.18	56.22

March 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.33
= 84.30

The days of inventory on hand (DOH) for STERIS plc have shown a fluctuating trend over the past five years. In the last fiscal year ending March 31, 2024, the company had an average of 84.30 days of inventory on hand, which is an increase compared to the previous year's 78.84 days. This indicates that STERIS plc held its inventory for a longer period in 2024, which may tie up more working capital.

Comparing the current DOH to earlier years, we observe that the inventory turnover has increased significantly over the five-year period. In the fiscal year ending March 31, 2020, STERIS plc held its inventory for an average of 56.22 days, which has progressively increased annually. This suggests that the company may be experiencing challenges in managing its inventory efficiently, potentially leading to increased carrying costs and obsolete inventory risks.

Overall, the increasing trend in days of inventory on hand for STERIS plc needs to be carefully monitored to ensure optimal inventory management efficiency and avoid negative impacts on the company's financial performance.