STERIS plc (STE)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	2,218,160	2,181,660	2,099,821	2,085,928	2,074,722	2,099,942	2,159,869	2,107,878	2,016,362	1,824,558	1,632,305	1,481,998	1,343,100	1,326,368	1,311,860	1,300,490	1,319,996	1,291,626
Revenue (ttm)	US$ in thousands	5,138,700	5,000,560	4,815,270	4,777,590	4,750,690	4,680,130	4,776,670	4,773,130	4,585,062	4,247,903	3,847,857	3,407,009	3,107,519	3,056,979	3,022,316	3,003,024	3,030,895	2,976,117
Gross profit margin		43.17%	43.63%	43.61%	43.66%	43.67%	44.87%	45.22%	44.16%	43.98%	42.95%	42.42%	43.50%	43.22%	43.39%	43.41%	43.31%	43.55%	43.40%

March 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $2,218,160K ÷ $5,138,700K
= 43.17%

Over the past few quarters, STERIS plc's gross profit margin has shown some fluctuations but has generally remained within a relatively stable range. The gross profit margin peaked at 45.22% in December 2022 but has since trended downwards, standing at 43.17% as of March 2024. Despite this slight decline, the company has maintained a gross profit margin above 43% consistently, indicating strong control over production costs and the ability to generate profit from its core operations.

A gross profit margin above 40% is generally considered healthy and indicates that the company is effectively managing its production costs relative to its revenue. STERIS plc's ability to consistently maintain a gross profit margin in the mid-40% range in recent quarters reflects its operational efficiency and competitiveness in the market. It will be important for the company to continue monitoring and managing its cost structure to sustain its profitability and financial performance moving forward.