STERIS plc (STE)

Working capital 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 current assets	US$ in thousands	2,869,120	2,011,440	1,879,000	1,211,750	1,224,040
Total current liabilities	US$ in thousands	931,127	861,844	922,222	577,920	503,607
Working capital turnover		2.65	3.95	4.79	4.90	4.21

March 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,138,700K ÷ ($2,869,120K – $931,127K)
= 2.65

Based on the working capital turnover ratios for STERIS plc from 2020 to 2024, there has been a fluctuating trend. The ratio decreased from 4.21 in 2020 to 2.65 in 2024. This suggests that STERIS plc's efficiency in utilizing its working capital to generate revenue decreased over the years. A lower working capital turnover ratio indicates that the company is less effective in generating sales from its working capital.

It is noteworthy that the working capital turnover ratio peaked at 4.90 in 2021, indicating a significant improvement in efficiency in that year. However, this improvement was not sustained as the ratio started trending downwards in the subsequent years.

Overall, STERIS plc's working capital turnover ratio has shown variations over the years, potentially indicating changes in the company's management of working capital and revenue generation efficiency. Further analysis and comparison with industry benchmarks would provide additional insights into the company's financial performance.