STERIS plc (STE)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	666,142	820,155	791,521	298,461	266,554	133,984	150,493	570,315	405,113	458,195	400,528	430,000	555,243	565,694	561,480	546,557	538,833	526,013
Long-term debt	US$ in thousands	3,120,160	3,231,080	3,366,240	2,860,120	3,018,660	3,001,580	2,873,940	2,846,450	2,945,480	3,175,320	3,421,510	3,256,710	1,650,540	1,713,200	1,020,550	1,022,160	1,150,520	1,136,960	1,187,200	1,210,000
Total stockholders’ equity	US$ in thousands	6,302,160	6,415,400	6,178,070	6,168,290	6,077,200	6,038,310	5,802,060	6,407,550	6,532,360	6,611,190	6,535,640	6,574,580	3,880,990	3,866,990	3,647,140	3,474,660	3,405,360	3,382,680	3,228,670	3,236,900
Return on total capital		7.07%	8.50%	8.29%	3.31%	2.93%	1.48%	1.73%	6.16%	4.27%	4.68%	4.02%	4.37%	10.04%	10.14%	12.03%	12.15%	11.83%	11.64%

March 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $666,142K ÷ ($3,120,160K + $6,302,160K)
= 7.07%

STERRIS plc's return on total capital has fluctuated over the past several quarters. The return on total capital was at its highest in the first quarter of 2021 at 12.15% and the fourth quarter of 2020 at 12.03%. It then experienced a slight decrease in the second and third quarters of 2021 before rebounding in the fourth quarter of 2021 at 10.04%.

Subsequently, the return on total capital saw a declining trend in the first half of 2022, reaching its lowest point at 1.48% in the fourth quarter of 2022. However, there was a notable increase in the first quarter of 2023 to 2.93%, followed by a further improvement to 3.31% in the second quarter of 2023.

In the most recent data available, the return on total capital for STERIS plc stands at 7.07% for the first quarter of 2024. Overall, the company has experienced varying levels of return on total capital in recent periods, indicating fluctuations in the efficiency of capital utilization and profitability. Further analysis and monitoring will be important to assess the company's ability to generate returns from its total capital in the future.