STERIS plc (STE)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	836,118	816,297	790,944	298,672	268,185	134,641	146,771	569,689	425,618	478,018	422,115	446,875	548,368	561,948	557,305	542,775	537,046	519,645
Total assets	US$ in thousands	11,063,700	11,435,200	11,280,600	10,784,400	10,821,800	10,799,900	10,489,600	11,188,000	11,423,600	11,690,000	11,752,400	12,101,000	6,574,470	6,580,780	5,492,570	5,363,930	5,440,870	5,335,580	5,185,720	5,229,720
Operating ROA		7.56%	7.14%	7.01%	2.77%	2.48%	1.25%	1.40%	5.09%	3.73%	4.09%	3.59%	3.69%	8.34%	8.54%	10.15%	10.12%	9.87%	9.74%

March 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $836,118K ÷ $11,063,700K
= 7.56%

STERIS plc's operating return on assets (ROA) has shown some fluctuation over the past several quarters. The operating ROA for the most recent quarter ending March 31, 2024, stands at 7.56%, representing an improvement compared to the previous quarter.

Looking back at the trend, we see a steady increase in operating ROA from the third quarter of 2021 to the first quarter of 2022, reaching a peak of 10.15% in September 2022. However, there was a decline in the following two quarters before bouncing back again in the first quarter of 2023.

The operating ROA dipped significantly in the second quarter of 2023 to 1.25%, which may indicate operational challenges or a temporary setback. However, it rebounded to 7.01% in the third quarter of 2023 and has been showing a generally improving trend since then.

Overall, despite some volatility, STERIS plc's operating ROA seems to be on an upward trajectory, with the most recent quarter demonstrating a healthy level of 7.56%. Investors and stakeholders may want to continue monitoring the company's operational efficiency and asset utilization to assess its long-term profitability and sustainability.