STERIS plc (STE)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 43.17% | 43.66% | 43.98% | 43.22% | 43.55% |
| Operating profit margin | 16.27% | 17.44% | 9.28% | 17.65% | 17.72% |
| Pretax margin | 10.27% | 3.50% | 6.88% | 16.67% | 16.45% |
| Net profit margin | 7.36% | 2.36% | 5.32% | 12.79% | 13.45% |
The profitability ratios of STERIS plc have shown some fluctuations over the past five years. The gross profit margin has remained relatively stable around the mid-40% range, indicating that the company has been able to effectively manage its cost of goods sold.
However, there has been some volatility in the operating profit margin, with a significant increase in 2023 followed by a sharp decrease in 2024. This suggests potential fluctuations in operating expenses or changes in revenue generation efficiency.
The pretax margin has also varied over the years, with a notable decline in 2023 followed by an increase in 2024. This indicates fluctuations in the company's ability to generate profit before taxes relative to its total revenue.
Similarly, the net profit margin has shown fluctuations, with a significant decrease in 2023 followed by a slight recovery in 2024. This ratio reflects STERIS plc's ability to generate profit after all expenses, including taxes.
Overall, while the company has generally maintained healthy profitability margins, investors and stakeholders may want to further investigate the reasons behind the fluctuations in profitability ratios to assess the company's long-term profitability and sustainability.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.56% | 7.31% | 3.73% | 8.34% | 9.87% |
| Return on assets (ROA) | 3.42% | 0.99% | 2.13% | 6.04% | 7.49% |
| Return on total capital | 7.13% | 2.93% | 4.27% | 10.04% | 11.83% |
| Return on equity (ROE) | 6.00% | 1.76% | 3.73% | 10.24% | 11.97% |
STREIS plc's profitability ratios have displayed fluctuations over the past five years. The Operating Return on Assets (Operating ROA) has shown a slight increase from 7.31% in 2023 to 7.56% in 2024, indicating an improvement in the company's ability to generate operating profits from its assets. However, the overall Return on Assets (ROA) has been more volatile, ranging from a low of 0.99% in 2023 to a high of 7.49% in 2020, with a significant drop to 3.42% in 2024.
The Return on Total Capital has also demonstrated variability, with a notable increase from 2.93% in 2023 to 7.13% in 2024, suggesting a higher return generated from the company's total capital investment. On the other hand, the Return on Equity (ROE) has seen fluctuations, with a decrease from 3.73% in 2022 to 1.76% in 2023, followed by a slight recovery to 6.00% in 2024.
Overall, while STERIS plc's profitability ratios have exhibited mixed performances, there are signs of improvement in certain areas, such as Operating ROA and Return on Total Capital, indicating an enhanced operational efficiency and better utilization of capital resources in recent years. However, the company may need to address the fluctuations in ROA and ROE to ensure sustained profitability and maximize returns for its shareholders.