STERIS plc (STE)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.01% | 43.52% | 43.66% | 43.98% | 43.22% |
| Operating profit margin | 15.87% | 16.27% | 5.91% | 10.42% | 10.40% |
| Pretax margin | 14.58% | 13.68% | 15.00% | 6.86% | 16.65% |
| Net profit margin | 11.26% | 7.36% | 2.36% | 5.32% | 12.79% |
STERS plc's Gross Profit Margin has shown a consistent improvement from 43.22% in March 2021 to 44.01% in March 2025, indicating effective cost management and higher efficiency in generating revenue after accounting for the cost of goods sold.
The Operating Profit Margin experienced fluctuations over the period, with a decline from 10.40% in March 2021 to 5.91% in March 2023, followed by a significant recovery to 15.87% in March 2025. This suggests varying levels of operational efficiency and cost control measures implemented by the company.
Looking at the Pretax Margin, there was a notable decrease from 16.65% in March 2021 to 6.86% in March 2022, indicating challenges faced in generating profit before accounting for taxes. However, the company managed to improve this margin to 14.58% by March 2025, signaling a recovery and better tax planning strategies.
The Net Profit Margin also exhibited fluctuations, dropping from 12.79% in March 2021 to 2.36% in March 2023, before rebounding to 11.26% in March 2025. This indicates the company's ability to control costs and increase profitability at the bottom line, albeit with some volatility.
Overall, STERIS plc's profitability ratios reflect a mixed performance over the period, with improvements in gross profit margin and bottom-line net profit margin, but some challenges in maintaining consistent operating and pretax margins. It is essential for the company to focus on sustainable cost management and operational efficiency to ensure long-term profitability.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.54% | 7.56% | 2.48% | 4.17% | 4.92% |
| Return on assets (ROA) | 6.06% | 3.42% | 0.99% | 2.13% | 6.04% |
| Return on total capital | 0.00% | 13.44% | 12.95% | 6.97% | 14.93% |
| Return on equity (ROE) | 9.29% | 6.00% | 1.76% | 3.73% | 10.21% |
Based on the provided data, STERIS plc's profitability ratios have shown fluctuations over the past few years:
1. Operating return on assets (Operating ROA) decreased from 4.92% in March 2021 to 3.72% in March 2022 and further decreased to 2.48% in March 2023 before experiencing a significant increase to 7.56% in March 2024. However, data for March 2025 is not available for comparison.
2. Return on assets (ROA) declined from 6.04% in March 2021 to 2.13% in March 2022 and continued to decrease to 0.99% in March 2023. The ratio then improved to 3.42% in March 2024, with no data provided for March 2025.
3. Return on total capital was 14.93% in March 2021 but decreased to 6.17% in March 2022. The ratio then increased to 12.95% in March 2023 and slightly to 13.44% in March 2024. Data for March 2025 is not available.
4. Return on equity (ROE) dropped from 10.21% in March 2021 to 3.73% in March 2022 and further decreased to 1.76% in March 2023. The ratio then improved to 6.00% in March 2024, with no data provided for March 2025.
Overall, the profitability ratios of STERIS plc have shown mixed performance, with some ratios improving in certain years while declining in others. These fluctuations indicate that the company may have faced operational or financial challenges during the period under review. Further analysis and context would be needed to gain a deeper understanding of the factors driving these changes in profitability.