STERIS plc (STE)

Payables 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
Payables	US$ in thousands	251,723	264,165	225,737	156,950	149,341
Payables turnover		11.60	10.59	11.38	11.24	11.46

March 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,920,540K ÷ $251,723K
= 11.60

The payables turnover ratio for STERIS plc has shown a consistent trend over the past five years. The ratio has ranged between 10.59 and 11.60, indicating that on average, the company is able to turn over its accounts payable approximately 11 times during the year.

A higher payables turnover ratio typically suggests that the company is efficient in managing its payable obligations, as it is paying off its suppliers relatively quickly. This could potentially indicate strong liquidity or favorable payment terms negotiated with suppliers.

On the other hand, a lower payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could be beneficial in terms of preserving cash flow or managing working capital efficiently.

Overall, STERIS plc's payables turnover ratio appears stable and within a healthy range, reflecting effective management of accounts payable over the past five years.