STERIS plc (STE)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.58 | 3.56 | 3.59 | 3.73 | 4.63 | 3.80 | 4.06 | 4.30 | 4.47 | 4.08 | 3.92 | 3.25 | 5.60 | 5.88 | 6.14 | 6.15 | 6.49 | 6.68 |
| Receivables turnover | 5.10 | 5.19 | 5.12 | 5.38 | 5.12 | 5.69 | 6.12 | 6.25 | 5.74 | 5.65 | 5.05 | 4.58 | 5.10 | 5.50 | 6.00 | 5.97 | 5.17 | 5.47 |
| Payables turnover | 12.27 | 11.02 | 10.05 | 11.01 | 10.59 | 10.89 | 11.22 | 11.64 | 11.38 | 11.70 | 10.10 | 8.29 | 11.24 | 12.87 | 13.69 | 12.75 | 11.46 | 12.05 |
| Working capital turnover | 2.65 | 3.83 | 3.70 | 4.17 | 4.13 | 3.97 | 4.70 | 5.08 | 4.79 | 4.15 | 3.44 | 3.95 | 4.90 | 4.56 | 4.23 | 4.86 | 4.21 | 4.94 |
STREIS plc has shown some fluctuations in its activity ratios over the last few quarters. The inventory turnover ratio has ranged from 3.25 to 6.68 times, indicating variations in how efficiently the company is managing its inventory levels. Generally, a higher ratio suggests more efficient inventory management, with a trend of improvement seen towards the end of the period.
In terms of receivables turnover, the company has maintained a relatively stable performance, fluctuating between 4.58 and 6.25 times. This ratio reflects the company's ability to collect its accounts receivables in a timely manner, with a consistent level of activity observed.
The payables turnover ratio has demonstrated some fluctuations, ranging from 8.29 to 13.69 times. This ratio indicates how quickly the company is paying its suppliers, with a general trend of improvement seen over the period.
The working capital turnover ratio has varied between 2.65 and 5.08 times, reflecting how effectively STERIS plc is generating revenue relative to its working capital levels. Overall, there is a trend of improvement in this ratio, suggesting the company is becoming more efficient in utilizing its working capital to generate revenue.
In summary, while there have been fluctuations in STERIS plc's activity ratios over the period analyzed, there are indications of improvement in inventory management efficiency, payables turnover, and working capital utilization, which bode well for the company's operational performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 79.69 | 102.40 | 101.56 | 97.76 | 78.84 | 95.98 | 89.96 | 84.96 | 81.70 | 89.56 | 93.00 | 112.45 | 65.18 | 62.03 | 59.45 | 59.38 | 56.22 | 54.61 |
| Days of sales outstanding (DSO) | days | 71.62 | 70.37 | 71.28 | 67.82 | 71.32 | 64.17 | 59.61 | 58.41 | 63.61 | 64.63 | 72.28 | 79.64 | 71.58 | 66.40 | 60.83 | 61.16 | 70.63 | 66.77 |
| Number of days of payables | days | 29.74 | 33.12 | 36.32 | 33.15 | 34.46 | 33.52 | 32.54 | 31.36 | 32.08 | 31.20 | 36.12 | 44.02 | 32.47 | 28.36 | 26.66 | 28.63 | 31.86 | 30.29 |
Days of Inventory on Hand (DOH) measures how efficiently the company manages its inventory. A higher DOH indicates slower turnover of inventory, tying up more capital in inventory. STERIS plc's DOH has fluctuated over the past quarters, with a peak of 102.40 days in December 2023 and a low of 54.61 days in December 2019. The recent DOH of 79.69 days as of March 31, 2024, suggests that the company is holding inventory for slightly longer compared to previous quarters.
Days of Sales Outstanding (DSO) indicates the average number of days it takes for the company to collect revenue after a sale is made. A lower DSO is generally better as it signifies faster cash conversion. STERIS plc's DSO has been relatively stable, with fluctuations ranging from 58.41 days to 79.64 days over the past quarters. The DSO was 71.62 days as of March 31, 2024, which is slightly higher compared to the previous quarter.
Number of Days of Payables shows how long the company takes to pay its suppliers. A longer payment period can indicate good cash management, but it could also strain relationships with suppliers if too long. STERIS plc's payables days have varied over the quarters, with a range from 26.66 days to 44.02 days. As of March 31, 2024, the company's payables days were 29.74 days, indicating a relatively consistent payment period in the most recent quarter.
In summary, STERIS plc has shown fluctuations in its activity ratios over the quarters, but overall, the company appears to be managing its inventory efficiently despite a slight increase in DOH. The DSO has remained relatively stable, indicating consistent collections practices. The payables days have also shown consistency, suggesting a balanced approach to managing supplier payments.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.46 | 0.44 | 0.43 | 0.44 | 0.44 | 0.43 | 0.46 | 0.43 | 0.40 | 0.36 | 0.33 | 0.28 | 0.47 | 0.46 | 0.55 | 0.56 | 0.56 | 0.56 |
The fixed asset turnover ratio for STERIS plc has shown some fluctuations over the past several quarters, ranging from 2.27 to 3.04. This ratio indicates how efficiently the company is generating revenue from its fixed assets. A higher fixed asset turnover ratio suggests that the company is effectively utilizing its fixed assets to generate sales.
On the other hand, the total asset turnover ratio, which measures how efficiently the company is using all its assets to generate revenue, has also varied, ranging from 0.28 to 0.56. A higher total asset turnover ratio implies that the company is efficiently using all its assets to generate sales.
Overall, STERIS plc's fixed asset turnover and total asset turnover ratios have generally been in line with industry standards, indicating efficient asset utilization. However, the fluctuations in these ratios over the quarters may warrant further analysis to understand the drivers behind these changes and to assess the long-term sustainability of the company's asset management strategy.