STERIS plc (STE)

Debt-to-assets ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Long-term debt	US$ in thousands	3,120,160	3,018,660	2,945,480	1,650,540	1,150,520
Total assets	US$ in thousands	11,063,700	10,821,800	11,423,600	6,574,470	5,440,870
Debt-to-assets ratio		0.28	0.28	0.26	0.25	0.21

March 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,120,160K ÷ $11,063,700K
= 0.28

The debt-to-assets ratio for STERIS plc has shown a gradual increase over the past five years, indicating a higher reliance on debt to finance its assets. As of March 31, 2024, the ratio stood at 0.28, consistent with the previous year's level. This suggests that 28% of the company's assets are financed by debt, while the remaining 72% are funded by equity. The trend of increasing debt-to-assets ratio could signify the company's strategic decision to utilize debt for growth opportunities or capital expenditures. It is essential for stakeholders to monitor this ratio to assess STERIS plc's leverage and financial stability over time.