STERIS plc (STE)

Quick 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
Cash	US$ in thousands	171,701	155,178	172,195	198,328	207,020	195,585	213,757	208,614	208,357	259,371	258,259	316,327	348,320	359,089	383,494	534,774	220,531	252,502	312,028	255,627
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	1,043,960	915,199	923,340	892,606	1,008,320	964,022	940,331	887,756	928,315	822,758	780,113	763,788	799,041	752,132	762,003	743,420	609,406	556,117	503,724	503,172
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
Quick ratio		1.19	1.20	1.36	1.31	1.31	1.27	1.32	1.24	1.32	1.36	1.19	1.19	1.24	1.23	1.46	1.12	1.44	1.60	1.87	1.58

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 shown some fluctuations over the years based on the provided data. The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets.

From June 30, 2020, to March 31, 2024, the quick ratio generally remained above 1, indicating that STERIS plc had an adequate level of liquid assets to cover its short-term liabilities. Peaks in the quick ratio were observed in September 30, 2020, where it reached 1.87, and September 30, 2021, at 1.46.

However, there were some periods when the quick ratio dipped below 1, such as in June 30, 2021, when it fell to 1.12. A quick ratio below 1 may suggest potential liquidity issues for the company, as its current assets may not be sufficient to cover its current liabilities without relying on selling inventory.

Overall, the fluctuations seen in STERIS plc's quick ratio over the years indicate varying levels of liquidity and the company's ability to meet its short-term obligations. It is important for stakeholders to monitor these trends to assess the company's financial health and liquidity position.