STERIS plc (STE)

Quick ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Cash	US$ in thousands	171,701	207,020	208,357	348,320	220,531
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	1,043,960	1,008,320	928,315	799,041	609,406
Total current liabilities	US$ in thousands	1,022,170	931,127	861,844	922,222	577,920
Quick ratio		1.19	1.31	1.32	1.24	1.44

March 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($171,701K + $—K + $1,043,960K) ÷ $1,022,170K
= 1.19

The quick ratio of STERIS plc has exhibited a generally stable trend over the past few years, reflecting the company's ability to meet its short-term obligations using its most liquid assets. As of March 31, 2021, the quick ratio stood at 1.44, indicating that for every $1 of current liabilities, the company had $1.44 in quick assets that could be readily converted into cash to cover these obligations.

However, there was a slight decrease in the quick ratio to 1.24 as of March 31, 2022. This decline may suggest a potential tightening of liquidity or an increase in short-term liabilities relative to quick assets during that period.

Subsequently, the quick ratio improved to 1.32 as of March 31, 2023, and then remained relatively stable at 1.31 as of March 31, 2024. These values indicate that STERIS plc maintained a healthy level of liquidity to cover its short-term liabilities, with a slight fluctuation in the ratio over these years.

It is important to note that the quick ratio for March 31, 2025, is unavailable (indicated by "—"), making it difficult to assess the company's liquidity position for that period.

Overall, the historical quick ratio analysis suggests that STERIS plc has managed its liquid assets effectively to meet its short-term financial obligations, although a closer examination of the latest financial data would be required to assess any potential changes in the company's liquidity position.