STERIS plc (STE)

Receivables turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	5,138,700	4,536,270	4,585,060	3,107,520	3,030,900
Receivables	US$ in thousands	1,008,320	928,315	799,041	609,406	586,481
Receivables turnover		5.10	4.89	5.74	5.10	5.17

March 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $5,138,700K ÷ $1,008,320K
= 5.10

The receivables turnover ratio for STERIS plc has shown fluctuations over the past five years. The ratio decreased from 5.17 in March 2020 to 5.10 in March 2021, then slightly increased to 5.74 in March 2022, before declining again to 4.89 in March 2023, and returning to 5.10 in March 2024.

Overall, the company has managed to efficiently convert its accounts receivable into cash, with the ratio hovering around 5 times annually in the last five years. A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more frequently, which is generally a positive sign as it reflects good liquidity and efficient credit management.

Analyzing trends in receivables turnover can provide insights into the company's ability to manage its credit policies, collect outstanding payments efficiently, and maintain healthy cash flow. It is important for STERIS plc to continue monitoring and managing its receivables turnover ratio to ensure optimal performance in this aspect of its financial operations.