STERIS plc (STE)

Days of sales outstanding (DSO)

		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
Receivables turnover		5.10	5.19	5.12	5.38	5.12	5.69	6.12	6.25	5.74	5.65	5.05	4.58	5.10	5.50	6.00	5.97	5.17	5.47
DSO	days	71.62	70.37	71.28	67.82	71.32	64.17	59.61	58.41	63.61	64.63	72.28	79.64	71.58	66.40	60.83	61.16	70.63	66.77

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.10
= 71.62

The Days Sales Outstanding (DSO) ratio measures how long it takes for a company to collect its accounts receivable. A lower DSO indicates faster collections and better efficiency in managing receivables.

Looking at STERIS plc's DSO trend over the past few quarters, we see some fluctuations. In the most recent quarter, ending on March 31, 2024, the DSO was 71.62 days, showing a slight increase compared to the previous quarter's DSO of 70.37 days. This indicates that the company took slightly longer to collect its accounts receivable in the most recent period.

When looking at longer-term trends, we observe that the DSO has generally been in the range of 60 to 70 days over the past few quarters, with some fluctuations along the way. It's important to note that compared to the same quarter in the prior year, the DSO has improved, as the DSO was 71.32 days in March 2023 but decreased to 71.62 days in March 2024.

Overall, while there have been some fluctuations in the DSO for STERIS plc, the company has generally been able to manage its accounts receivable efficiently. However, management should continue to monitor DSO trends to ensure effective collections and cash flow management.