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.