STERIS plc (STE)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	6,302,160	6,077,200	6,532,360	3,880,990	3,405,360
Debt-to-equity ratio		0.50	0.50	0.45	0.43	0.34

March 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,120,160K ÷ $6,302,160K
= 0.50

The debt-to-equity ratio of STERIS plc has shown a consistent increase over the past five years, indicating a growing proportion of debt relative to equity in the company's capital structure. In the fiscal year ending March 31, 2020, the ratio was 0.34, which has steadily climbed to 0.50 by the end of March 31, 2024.

This upward trend suggests that STERIS plc has been relying more on debt financing compared to equity financing. While a higher debt-to-equity ratio can amplify returns on equity in favorable market conditions, it also poses higher financial risk due to increased leverage. Therefore, stakeholders should closely monitor this trend to ensure that the company manages its debt levels prudently and maintains a healthy balance between debt and equity in its capital structure.