STERIS plc (STE)

Days of sales outstanding (DSO)

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Receivables turnover		5.23	5.90	5.87	6.09	5.40	5.61	5.56	5.73	5.34	5.81	6.12	6.25	5.74	5.65	5.05	4.58	5.10	5.50	6.00	5.97
DSO	days	69.79	61.88	62.14	59.92	67.63	65.07	65.65	63.71	68.34	62.78	59.61	58.41	63.61	64.63	72.28	79.64	71.58	66.40	60.83	61.16

March 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.23
= 69.79

The days of sales outstanding (DSO) is a key metric that helps in evaluating how efficient a company is at collecting its accounts receivable.

Analyzing the DSO trend of STERIS plc from June 30, 2020, to March 31, 2025, reveals fluctuations in the company's collection efficiency over time:

- The DSO decreased from 61.16 days on June 30, 2020, to 58.41 days on June 30, 2022, indicating an improvement in collecting receivables more quickly.
- However, there was a subsequent increase in DSO to 69.79 days by March 31, 2025, suggesting a potential slowdown in collections efficiency.

Overall, while STERIS plc managed to reduce its DSO in the initial years, the upward trend in recent periods indicates a need to focus on improving accounts receivable management to ensure timely collections and optimize cash flow. Further analysis of the underlying factors contributing to the DSO fluctuations would be essential to address any potential issues impacting the company's working capital management.