STERIS plc (STE)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	5,138,700	5,000,560	4,815,270	4,777,590	4,750,690	4,680,130	4,776,670	4,773,130	4,585,062	4,247,903	3,847,857	3,407,009	3,107,519	3,056,979	3,022,316	3,003,024	3,030,895	2,976,117
Property, plant and equipment	US$ in thousands	1,765,180	1,844,480	1,743,860	1,726,090	1,632,780	1,671,160	1,572,400	1,573,340	1,552,580	1,521,590	1,511,260	1,499,450	1,235,400	1,226,900	1,176,070	1,148,050	1,111,860	1,102,600	1,066,220	1,054,220
Fixed asset turnover		2.91	2.71	2.76	2.77	2.91	2.80	3.04	3.03	2.95	2.79	2.55	2.27	2.52	2.49	2.57	2.62	2.73	2.70

March 31, 2024 calculation

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

The fixed asset turnover ratio for STERIS plc has fluctuated over the past several quarters, ranging from a low of 2.27 to a high of 3.04. This ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio typically suggests that the company is generating more sales from its investment in fixed assets, which is generally seen as a positive sign of operational efficiency.

In STERIS plc's case, the ratio has shown some variability, with some quarters performing better than others. Overall, the company's fixed asset turnover has generally been around the range of 2.5 to 3.0, indicating that the company is effectively using its fixed assets to generate revenue.

It is important to note that changes in the fixed asset turnover ratio can be influenced by various factors such as changes in sales volume, asset base, or asset utilization efficiency. Therefore, further analysis of the company's financial performance and operating activities would be necessary to fully understand the drivers behind the fluctuations in the fixed asset turnover ratio.