STERIS plc (STE)
Working capital turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,459,520 | 5,138,700 | 4,536,270 | 4,585,060 | 3,107,520 |
| Total current assets | US$ in thousands | 2,000,760 | 2,869,120 | 2,011,440 | 1,879,000 | 1,211,750 |
| Total current liabilities | US$ in thousands | 1,022,170 | 931,127 | 861,844 | 922,222 | 577,920 |
| Working capital turnover | 5.58 | 2.65 | 3.95 | 4.79 | 4.90 |
March 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,459,520K ÷ ($2,000,760K – $1,022,170K)
= 5.58
The working capital turnover ratio for STERIS plc has experienced a decline over the years, falling from 4.90 in March 2021 to 2.65 in March 2024. This decrease indicates that the company's efficiency in utilizing its working capital to generate sales revenue has weakened. The ratio of 3.95 in March 2023 also suggests a downward trend in the company's working capital efficiency.
It is worth noting that the absence of data for March 31, 2025, prevents a complete trend analysis for that year. Overall, the declining trend in the working capital turnover ratio raises concerns about STERIS plc's management of its working capital resources and its ability to effectively convert them into sales, which may impact its profitability and liquidity in the long run.
Peer comparison
Mar 31, 2025