STERIS plc (STE)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.33	0.33	0.35	0.32	0.33	0.33	0.33	0.31	0.31	0.32	0.34	0.33	0.30	0.31	0.22	0.23	0.25	0.25	0.27	0.27

March 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,120,160K ÷ ($3,120,160K + $6,302,160K)
= 0.33

The debt-to-capital ratio of STERIS plc has shown relatively stable levels over the past few quarters, ranging between 0.30 and 0.35. This ratio indicates that, on average, the company's debt accounts for 31% to 35% of its total capital structure.

A consistent debt-to-capital ratio suggests that STERIS plc has been able to maintain a balanced mix of debt and equity financing, without significant fluctuations in its leverage position. However, it is important to consider the industry norms and the company's specific financial goals when evaluating this ratio.

Overall, the stability of STERIS plc's debt-to-capital ratio reflects a prudent approach to managing its capital structure, maintaining a healthy balance between debt and equity to support its operations and growth strategies.