STERIS plc (STE)

Fixed asset turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	5,138,700	4,536,270	4,585,060	3,107,520	3,030,900
Property, plant and equipment	US$ in thousands	1,765,180	1,632,780	1,552,580	1,235,400	1,111,860
Fixed asset turnover		2.91	2.78	2.95	2.52	2.73

March 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,138,700K ÷ $1,765,180K
= 2.91

The fixed asset turnover ratio for STERIS plc has exhibited fluctuation over the past five years. It increased from 2.73 in 2020 to 2.95 in 2022, indicating that the company generated more revenue per dollar of fixed assets in 2022 compared to 2020. However, this trend did not continue as the ratio decreased to 2.52 in 2021 before slightly rebounding to 2.78 in 2023. The most recent data for 2024 shows the ratio at 2.91, indicating an improvement compared to the previous year.

Overall, the trend in fixed asset turnover suggests some variability in the company's efficiency in utilizing its fixed assets to generate sales. It is important for stakeholders to further investigate the factors contributing to these fluctuations to assess the company's operational efficiency and growth prospects.