STERIS plc (STE)

Quick ratio

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cash	US$ in thousands	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	319,581	199,230	225,536	238,067
Short-term investments	US$ in thousands	4,767	8,099	7,137	7,143	7,069	6,820	6,363	7,178	8,520	9,957	9,949	10,275	10,301	10,484	9,868	9,979	9,624	12,034	11,030	11,980
Receivables	US$ in thousands	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	586,481	544,405	513,353	509,655
Total current liabilities	US$ in thousands	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	503,607	450,806	428,023	432,774
Quick ratio		1.31	1.28	1.33	1.24	1.33	1.37	1.20	1.20	1.25	1.24	1.47	1.13	1.45	1.62	1.90	1.60	1.82	1.68	1.75	1.76

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 of STERIS plc has shown some fluctuations over the past few quarters, ranging from 1.13 to 1.90. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.

The quick ratio has generally been above 1, indicating that STERIS plc has had an excess of liquid assets to cover its short-term liabilities. A quick ratio above 1 is typically considered a positive sign, as it suggests the company is in a strong position to meet its current obligations without relying heavily on inventory sales.

There are few observations to note:
- The quick ratio peaked at 1.90 in September 2020 and has shown strong liquidity in the short term.
- While the quick ratio fluctuated slightly over the quarters, it remained above 1, indicating a healthy liquidity position.
- The declining trend from 1.76 in September 2019 to 1.13 in June 2021 may have raised concerns about the company's ability to meet its short-term obligations, but it has since recovered and stabilized above 1.

Overall, the quick ratio of STERIS plc demonstrates a consistently healthy liquidity position, which suggests the company is well-positioned to meet its short-term financial obligations.