STERIS plc (STE)

Inventory turnover

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Cost of revenue	US$ in thousands	3,056,750	2,902,220	2,555,540	2,568,700	1,764,420
Inventory	US$ in thousands	581,329	674,535	695,493	574,999	315,067
Inventory turnover		5.26	4.30	3.67	4.47	5.60

March 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $3,056,750K ÷ $581,329K
= 5.26

The inventory turnover of STERIS plc has shown a declining trend over the past few years. In March 2021, the inventory turnover was 5.60, indicating that the company's inventory turned over approximately 5.60 times during the year. However, this ratio decreased to 4.47 in March 2022 and further to 3.67 in March 2023, suggesting that the company's ability to manage its inventory efficiently decreased during those periods.

There was a slight improvement in the inventory turnover ratio in March 2024, reaching 4.30. This indicates that the company managed to turn over its inventory more times during that period compared to the previous year. However, the data for March 2025 is not available, so it is unclear how the inventory turnover trend continued in that year.

Overall, a decreasing trend in inventory turnover could indicate potential issues with inventory management, such as overstocking or slow-moving inventory. It is important for STERIS plc to closely monitor its inventory turnover and take necessary steps to improve efficiency in managing its inventory to optimize its working capital and operational performance.