STERIS plc (STE)
Liquidity ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Current ratio | 1.96 | 3.08 | 2.33 | 2.04 | 2.10 |
| Quick ratio | 1.19 | 1.31 | 1.32 | 1.24 | 1.44 |
| Cash ratio | 0.17 | 0.22 | 0.24 | 0.38 | 0.38 |
STERIS plc has shown consistent and strong liquidity positions based on the provided liquidity ratios.
1. Current Ratio:
- The current ratio has been above 2 for the past few years, indicating that STERIS plc has more than enough current assets to cover its current liabilities. The ratio has steadily increased from 2.10 in 2021 to 3.08 in 2024, which indicates an improvement in the company's ability to meet short-term obligations.
2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, measures the ability of a company to use its most liquid assets to meet its short-term liabilities. STERIS plc has maintained a healthy quick ratio over the years, ranging from 1.24 to 1.44. This suggests that the company has an adequate level of liquid assets to cover its short-term obligations without relying too heavily on inventory.
3. Cash Ratio:
- The cash ratio indicates the company's ability to cover its current liabilities with its cash and cash equivalents alone. STERIS plc has consistently maintained a cash ratio above 0.20, with values ranging from 0.22 to 0.38. This indicates that the company has a sufficient level of cash on hand to meet its short-term obligations.
Overall, STERIS plc's liquidity ratios suggest that the company is in a strong financial position with ample liquidity to meet its short-term obligations and unexpected expenses.
Additional liquidity measure
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 105.68 | 124.80 | 134.09 | 113.24 | 104.29 |
The cash conversion cycle of STERIS plc has exhibited fluctuations over the years. As of March 31, 2021, the company had a cash conversion cycle of 104.29 days. This period increased to 113.24 days by March 31, 2022, and further rose to 134.09 days by March 31, 2023. Subsequently, the cycle decreased to 124.80 days by March 31, 2024. Notably, by March 31, 2025, the cash conversion cycle was reported as 0.00 days, which is unusual and may warrant further investigation. Overall, the variations in the cash conversion cycle indicate changes in the efficiency of STERIS plc's working capital management and could impact the company's liquidity and operations.