STERIS plc (STE)

Current ratio

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Total current assets US$ in thousands 2,000,760 1,897,850 1,937,870 1,940,490 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
Total current liabilities US$ in thousands 1,022,170 891,120 805,483 834,360 931,127 913,694 873,115 886,911 861,844 796,457 872,815 908,323 922,222 904,307 785,701 1,145,020 577,920 505,867 435,418 479,549
Current ratio 1.96 2.13 2.41 2.33 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

March 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,000,760K ÷ $1,022,170K
= 1.96

The current ratio of STERIS plc has shown some fluctuations over the past few years, ranging from a low of 1.75 to a high of 3.08. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered favorable as it suggests the company can cover its short-term obligations.

Between June 2023 and June 2024, there was a notable increase in the current ratio from 2.29 to 3.08, indicating the company significantly improved its ability to meet short-term obligations. However, the ratio declined in the subsequent periods, stabilizing around 2.13 to 2.49.

Overall, the current ratio of STERIS plc has demonstrated a relatively healthy financial position, remaining above 1.5 throughout the period under review. It is important to note that while a high current ratio may signal strength, excessively high ratios could indicate inefficiency in asset utilization. Therefore, further analysis of the company's liquidity management and working capital policies would provide a more comprehensive understanding of its financial health.