STERIS plc (STE)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	207,020	195,585	213,757	208,614	208,357	259,371	258,259	316,327	348,320	359,089	383,494	534,774	220,531	252,502	312,028	255,627	319,581	199,230	225,536	238,067
Short-term investments	US$ in thousands	4,767	8,099	7,137	7,143	7,069	6,820	6,363	7,178	8,520	9,957	9,949	10,275	10,301	10,484	9,868	9,979	9,624	12,034	11,030	11,980
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
Cash ratio		0.23	0.22	0.25	0.24	0.25	0.33	0.30	0.36	0.39	0.41	0.50	0.48	0.40	0.52	0.74	0.55	0.65	0.47	0.55	0.58

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 exhibited some fluctuations over the past few quarters. The ratio indicates the proportion of cash and cash equivalents that the company holds compared to its current liabilities.

The trend of the cash ratio shows that STERIS plc has generally maintained a healthy level of liquidity over the periods analyzed. The ratio has ranged from a low of 0.22 to a high of 0.74, with the most recent value reported at 0.23 as of March 31, 2024.

A cash ratio above 1 indicates that a company has enough cash to cover its short-term liabilities. While STERIS plc has not surpassed this threshold in the data provided, the company's cash ratio above 0.2 demonstrates a consistent ability to meet its immediate financial obligations using its cash reserves.

Overall, STERIS plc's cash ratio analysis suggests that the company has managed its liquidity prudently, maintaining a balance between holding an adequate level of cash for operational needs and investing excess cash for potential returns.