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.