STERIS plc (STE)

Cash ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	207,020	208,357	348,320	220,531	319,581
Short-term investments	US$ in thousands	4,767	7,069	8,520	10,301	9,624
Total current liabilities	US$ in thousands	931,127	861,844	922,222	577,920	503,607
Cash ratio		0.23	0.25	0.39	0.40	0.65

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($207,020K + $4,767K) ÷ $931,127K
= 0.23

The cash ratio of STERIS plc has been declining over the past five years, from 0.65 in March 2020 to 0.23 in March 2024. This ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents. The decreasing trend suggests that STERIS plc may have been less liquid in recent years compared to prior periods. A lower cash ratio may signal potential challenges in meeting immediate financial obligations without relying on other sources of liquidity or financing. STERIS plc may need to monitor and manage its cash position effectively to maintain financial stability and flexibility moving forward.