STERIS plc (STE)

Working capital turnover

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Revenue (ttm)	US$ in thousands	5,138,700	5,000,560	4,815,270	4,777,590	4,750,690	4,680,130	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	3,030,895	2,976,117
Total current assets	US$ in thousands	2,869,120	2,218,950	2,173,980	2,031,260	2,011,440	1,976,630	1,888,300	1,847,950	1,879,000	1,927,090	1,904,630	2,007,860	1,211,750	1,176,080	1,150,310	1,097,130	1,224,040	1,052,870	1,031,950	1,044,280
Total current liabilities	US$ in thousands	931,127	913,694	873,115	886,911	861,844	796,457	872,815	908,323	922,222	904,307	785,701	1,145,020	577,920	505,867	435,418	479,549	503,607	450,806	428,023	432,774
Working capital turnover		2.65	3.83	3.70	4.17	4.13	3.97	4.70	5.08	4.79	4.15	3.44	3.95	4.90	4.56	4.23	4.86	4.21	4.94

March 31, 2024 calculation

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

The working capital turnover of STERIS plc has shown some fluctuations over the past few quarters. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

The trend in STERIS plc's working capital turnover ratio has generally been positive, indicating an improvement in working capital efficiency. However, there are fluctuations in the ratio, suggesting some variability in the management of working capital over the analyzed period.

The highest working capital turnover ratio was 5.08 in Jun 30, 2022, which indicates that STERIS plc generated $5.08 in sales for every $1 of working capital investment. Subsequently, the ratio decreased to 2.65 in Mar 31, 2024, suggesting a decline in working capital efficiency.

Overall, STERIS plc's working capital turnover ratios demonstrate a level of consistency, with occasional fluctuations. It is essential for the company to closely monitor and manage its working capital to maintain efficiency and support its operational activities effectively.