STERIS plc (STE)
Solvency ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.53 | 1.76 | 1.78 | 1.75 | 1.69 |
Based on the provided solvency ratios of STERIS plc:
1. Debt-to-assets ratio: STERIS plc maintained a debt-to-assets ratio of 0.00 from March 2021 to March 2025. This indicates that the company has not utilized debt to finance its assets during this period, showing a conservative approach towards leverage and financial risk.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio remained consistently at 0.00 from March 2021 to March 2025. This ratio reflects the proportion of a company's capital that is funded by debt, and in STERIS's case, the continuous absence of debt financing in the capital structure.
3. Debt-to-equity ratio: The debt-to-equity ratio also stayed at 0.00 from March 2021 to March 2025. This ratio compares a company's total debt to its shareholders' equity, highlighting the extent to which debt is used to finance the company's operations. STERIS's consistent 0.00 ratio indicates a low reliance on debt for its capital needs.
4. Financial leverage ratio: The financial leverage ratio slightly increased from 1.69 in March 2021 to 1.78 in March 2023 before decreasing to 1.76 in March 2024. This ratio measures the degree to which a company uses debt to finance its assets and illustrates the potential impact of debt on the company's financial performance. Despite the slight fluctuations, STERIS plc's financial leverage ratio remained relatively stable over the period.
In summary, STERIS plc demonstrates a strong solvency position with no debt used to finance its assets, capital, or operations. The company's conservative approach to leverage is evident in its consistent low debt ratios and stable financial leverage ratio, indicating a prudent and sustainable financial structure.
Coverage ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 5.87 | 7.11 | 5.09 | 15.63 |
The interest coverage ratio of STERIS plc has shown fluctuations over the years. As of March 31, 2021, the interest coverage ratio was 15.63, indicating that the company generated 15.63 times more earnings before interest and taxes (EBIT) than the interest expenses incurred during that period. This high ratio suggests the company had a strong ability to meet its interest payment obligations.
However, by March 31, 2025, the interest coverage ratio had decreased significantly to 0.00, which implies that the company's EBIT was not sufficient to cover its interest expenses during that period. This could raise concerns about the company's financial health and ability to service its debt obligations.
Between 2021 and 2025, the interest coverage ratio experienced fluctuations, reaching a low point in 2025. It is important for stakeholders to closely monitor STERIS plc's interest coverage ratio to assess its financial stability and ability to handle debt servicing requirements in the future.