STERIS plc (STE)

Total asset 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
Total assets	US$ in thousands	11,063,700	10,821,800	11,423,600	6,574,470	5,440,870
Total asset turnover		0.46	0.42	0.40	0.47	0.56

March 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $5,138,700K ÷ $11,063,700K
= 0.46

The total asset turnover ratio for STERIS plc has been fluctuating over the past five years. It decreased from 0.56 in March 2020 to 0.47 in March 2021, and then to 0.40 in March 2022, before slightly increasing to 0.42 in March 2023 and further to 0.46 in March 2024.

A total asset turnover ratio of less than 1 indicates that the company is generating less in sales than the value of its total assets. The decreasing trend from 2020 to 2022 may suggest a decrease in efficiency in generating revenue from its assets, but the slight improvements in 2023 and 2024 indicate some progress in utilizing its assets more effectively.

Overall, STERIS plc should continue to monitor and improve its total asset turnover ratio to ensure optimal utilization of its assets to generate revenue efficiently.