STERIS plc (STE)

Receivables 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
Revenue (ttm)	US$ in thousands	5,459,510	5,398,370	5,423,440	5,436,890	5,441,930	5,407,380	5,227,730	5,085,890	4,957,840	4,783,690	4,776,670	4,773,130	4,585,062	4,247,903	3,847,857	3,407,009	3,107,519	3,056,979	3,022,316	3,003,024
Receivables	US$ in thousands	1,043,960	915,199	923,340	892,606	1,008,320	964,022	940,331	887,756	928,315	822,758	780,113	763,788	799,041	752,132	762,003	743,420	609,406	556,117	503,724	503,172
Receivables turnover		5.23	5.90	5.87	6.09	5.40	5.61	5.56	5.73	5.34	5.81	6.12	6.25	5.74	5.65	5.05	4.58	5.10	5.50	6.00	5.97

March 31, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $5,459,510K ÷ $1,043,960K
= 5.23

The receivables turnover ratio for STERIS plc has shown some fluctuations over the past few quarters. The ratio indicates how efficiently the company is collecting payments from its customers. A higher receivables turnover ratio generally suggests that the company is collecting outstanding receivables more quickly.

From the data provided, we can see that the receivables turnover ratio for STERIS plc ranged from a low of 4.58 in June 30, 2021, to a high of 6.25 in June 30, 2022. The ratio experienced some variability but generally remained within a moderate range between 4.58 and 6.25. This suggests that the company's collection of accounts receivable was stable during this period.

It's important to note that a consistent or improving receivables turnover ratio is usually positive, indicating effective credit risk management and collection practices. However, a declining ratio may signal issues with customer payment behavior or credit policies.

Overall, STERIS plc's receivables turnover ratio analysis indicates a relatively stable collection efficiency over the period, with some minor fluctuations that may warrant further investigation to understand the underlying reasons behind them.