STERIS plc (STE)

Days of inventory on hand (DOH)

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Inventory turnover		4.58	3.56	3.59	3.73	4.63	3.80	4.06	4.30	4.47	4.08	3.92	3.25	5.60	5.88	6.14	6.15	6.49	6.68
DOH	days	79.69	102.40	101.56	97.76	78.84	95.98	89.96	84.96	81.70	89.56	93.00	112.45	65.18	62.03	59.45	59.38	56.22	54.61

March 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.58
= 79.69

The days of inventory on hand (DOH) for STERIS plc has exhibited some fluctuation over the past few quarters. The DOH has ranged from a low of 54.61 days as of December 31, 2019, to a high of 112.45 days as of June 30, 2021.

In recent quarters, the DOH has shown a decreasing trend, dropping from 102.40 days as of December 31, 2023, to 79.69 days as of March 31, 2024. This signifies an improvement in managing inventory levels efficiently.

A higher DOH indicates that the company is holding onto inventory for a longer period, which may tie up capital and lead to higher storage costs. On the other hand, a lower DOH may suggest more efficient inventory management, quicker inventory turnover, and potentially better liquidity.

Overall, monitoring the DOH trend can provide insights into how effectively STERIS plc is managing its inventory levels and may indicate potential operational efficiencies or challenges.