STERIS plc (STE)

Return on assets (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
Net income (ttm)	US$ in thousands	378,239	566,841	549,926	119,322	107,030	-27,934	-8,139	376,957	243,888	279,070	249,948	285,995	397,400	432,546	422,975	411,886	407,659	393,815
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
ROA		3.42%	4.96%	4.87%	1.11%	0.99%	-0.26%	-0.08%	3.37%	2.13%	2.39%	2.13%	2.36%	6.04%	6.57%	7.70%	7.68%	7.49%	7.38%

March 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $378,239K ÷ $11,063,700K
= 3.42%

STERIS plc's return on assets (ROA) has exhibited some fluctuations over the past several quarters. In the most recent quarter, ending March 31, 2024, the ROA stood at 3.42%, which was a decrease from the previous quarter's 4.96%. This decline may raise concerns about the company's efficiency in generating profits from its assets.

Looking further back, the ROA has shown variability, with some quarters even recording negative ROA figures, indicating that the company may have struggled to effectively utilize its assets to generate profits during those periods.

However, it is important to note that STERIS plc's ROA has shown some strong performances in the past, notably in the quarters ending December 31, 2020, and September 30, 2020, where the ROA exceeded 7%. These quarters demonstrated the company's ability to efficiently generate profits relative to its asset base.

Overall, the trend in STERIS plc's ROA suggests some inconsistency in the company's ability to generate returns from its assets, with periods of strong performance interspersed with weaker results. Analyzing the factors driving these fluctuations would be crucial in assessing the company's operational efficiency and future financial prospects.