STERIS plc (STE)

Quick ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash	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
Receivables	US$ in thousands	1,008,320	928,315	799,041	609,406	586,481
Total current liabilities	US$ in thousands	931,127	861,844	922,222	577,920	503,607
Quick ratio		1.31	1.33	1.25	1.45	1.82

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($207,020K + $4,767K + $1,008,320K) ÷ $931,127K
= 1.31

The quick ratio for STERIS plc has shown some fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

In 2020, STERIS plc had a quick ratio of 1.82, indicating a strong ability to cover its short-term liabilities with liquid assets. However, this ratio has been gradually decreasing since then, with a ratio of 1.45 in 2021, 1.25 in 2022, and 1.33 in 2023.

In the most recent period ending March 31, 2024, the quick ratio increased slightly to 1.31. While the current ratio is still above 1, showing that STERIS plc has sufficient liquid assets to cover its short-term liabilities, the decreasing trend over the past few years may indicate a potential liquidity concern that investors and stakeholders should monitor closely.