STERIS plc (STE)

Return on equity (ROE)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Net income	US$ in thousands	614,641	378,239	107,030	243,888	397,400
Total stockholders’ equity	US$ in thousands	6,615,760	6,302,160	6,087,170	6,544,640	3,891,470
ROE		9.29%	6.00%	1.76%	3.73%	10.21%

March 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $614,641K ÷ $6,615,760K
= 9.29%

The return on equity (ROE) of STERIS plc has shown a declining trend over the past five years. In March 31, 2021, the ROE stood at 10.21%, indicating that the company generated a profit of 10.21% for each dollar of shareholder's equity. However, by March 31, 2022, the ROE had decreased significantly to 3.73%, suggesting a decrease in the company's profitability relative to its equity.

The downward trend in ROE continued in the subsequent years, with ROE dropping to 1.76% in March 31, 2023. This indicates that the company's ability to generate profit from its equity investment further declined. However, there was a slight improvement in the ROE in March 31, 2024, which rose to 6.00%. Although this shows a recovery from the low in 2023, the ROE still remains below the levels seen in the earlier years.

It is important to note that there is no data available for March 31, 2025, making it difficult to analyze the latest performance of STERIS plc in terms of ROE. Overall, the declining trend in ROE over the past few years may indicate potential challenges in the company's profitability and efficiency in utilizing shareholder's equity. Further analysis and monitoring of the company's financial performance are recommended to understand the factors contributing to these changes and their implications for investors.