STERIS plc (STE)

Current 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
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
Current ratio		3.08	2.43	2.49	2.29	2.33	2.48	2.16	2.03	2.04	2.13	2.42	1.75	2.10	2.32	2.64	2.29	2.43	2.34	2.41	2.41

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,869,120K ÷ $931,127K
= 3.08

The current ratio is a financial metric used to evaluate a company's ability to cover its short-term liabilities with its short-term assets. A higher current ratio is generally preferred as it indicates a stronger ability to meet short-term obligations.

Analyzing the current ratio of STERIS plc over the past several quarters, we observe fluctuations in the ratio. The current ratio has varied between 1.75 to 3.08 during the period under review.

The trend in the current ratio shows some volatility, with occasional peaks and troughs. For instance, in March 2024, the current ratio stands at 3.08, indicating STERIS plc had $3.08 in current assets for every $1 of current liabilities. This suggests a strong liquidity position at that point in time.

On the other hand, the lowest current ratio of 1.75 was recorded in September 2021, indicating a weaker liquidity position with $1.75 in current assets for every $1 of current liabilities.

Overall, the current ratio of STERIS plc has generally been above 2.0, which is considered a healthy level indicating a solid ability to meet short-term obligations. However, investors and analysts should continue monitoring the current ratio over time to assess any potential changes in the company's liquidity position.