STERIS plc (STE)

Inventory turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cost of revenue	US$ in thousands	2,920,540	2,798,150	2,568,700	1,764,420	1,710,970
Inventory	US$ in thousands	674,535	604,410	574,999	315,067	263,544
Inventory turnover		4.33	4.63	4.47	5.60	6.49

March 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,920,540K ÷ $674,535K
= 4.33

The inventory turnover ratio of STERIS plc has exhibited a declining trend over the past five years. The trend suggests that the company is taking longer to sell its inventory compared to previous years. A lower inventory turnover ratio may indicate potential issues such as excess inventory, slow-moving stock, or decreased demand for the company's products. STERIS plc should closely monitor and address the factors contributing to this decline in inventory turnover to optimize its inventory management and enhance operational efficiency.