STERIS plc (STE)

Payables turnover

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Cost of revenue (ttm)	US$ in thousands	2,985,601	2,985,915	2,963,375	2,962,085	2,966,335	2,994,385	2,951,184	2,870,535	2,798,147	2,640,436	2,616,796	2,665,255	2,568,702	2,423,351	2,215,557	1,925,011	1,766,235	1,731,453	1,711,298	1,703,376
Payables	US$ in thousands	280,770	238,298	235,070	231,720	251,723	276,730	293,628	260,687	279,620	242,491	233,308	228,987	225,737	207,152	219,255	232,186	156,950	134,471	124,944	133,532
Payables turnover		10.63	12.53	12.61	12.78	11.78	10.82	10.05	11.01	10.01	10.89	11.22	11.64	11.38	11.70	10.10	8.29	11.25	12.88	13.70	12.76

March 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,985,601K ÷ $280,770K
= 10.63

The payables turnover ratio of STERIS plc has shown fluctuations over the past few years. The ratio indicates how efficiently the company is managing its accounts payable by comparing the purchases made on credit to the average accounts payable during a period.

From June 30, 2020, to September 30, 2021, the payables turnover ratio increased steadily from 12.76 to 10.10, indicating that the company was turning over its payables more frequently during this period. However, from December 31, 2021, to June 30, 2024, the ratio remained relatively stable between 10.63 and 12.78, suggesting consistent management of accounts payable during this time.

Overall, the payables turnover ratio of STERIS plc has shown moderate variability, with the most recent value as of March 31, 2025, standing at 10.63. This ratio should be analyzed in conjunction with other financial metrics to get a comprehensive understanding of the company's liquidity management and vendor payment practices.