STERIS plc (STE)

Operating return on assets (Operating ROA)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Operating income	US$ in thousands	866,641	836,118	268,185	477,815	323,303
Total assets	US$ in thousands	10,146,800	11,063,700	10,821,800	11,452,600	6,574,470
Operating ROA		8.54%	7.56%	2.48%	4.17%	4.92%

March 31, 2025 calculation

Operating ROA = Operating income ÷ Total assets
= $866,641K ÷ $10,146,800K
= 8.54%

Operating Return on Assets (Operating ROA) measures a company's ability to generate earnings from its operational assets. Looking at the historical trend of STERIS plc's Operating ROA, we can observe the following:

1. In March 31, 2021, the Operating ROA stood at 4.92%. This indicates that for every dollar of assets the company had, it generated a return of 4.92 cents through its core operations.

2. By March 31, 2022, the Operating ROA decreased to 3.72%, reflecting a decline in the efficiency of asset utilization in generating operating profits.

3. The trend continued in March 31, 2023, with the Operating ROA further declining to 2.48%. This indicates that the company faced challenges in improving its operational efficiency and profitability from its assets.

4. However, in March 31, 2024, there was a significant improvement in the Operating ROA, which surged to 7.56%. This indicates a positive operational performance, where the company generated higher returns relative to its assets.

5. The Operating ROA data is not available for March 31, 2025. It is essential for stakeholders to investigate the reasons behind this missing data point to assess the company's operational performance for that period.

Overall, analyzing STERIS plc's Operating ROA over the years shows fluctuations in the company's ability to efficiently generate profits from its operational assets. It is important for management to focus on improving asset utilization and operational efficiency to enhance the company's profitability in the long term.