STERIS plc (STE)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,063,700 | 11,435,200 | 11,280,600 | 10,784,400 | 10,821,800 | 10,799,900 | 10,489,600 | 11,188,000 | 11,423,600 | 11,690,000 | 11,752,400 | 12,101,000 | 6,574,470 | 6,580,780 | 5,492,570 | 5,363,930 | 5,440,870 | 5,335,580 | 5,185,720 | 5,229,720 |
| 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 |
| Financial leverage ratio | 1.76 | 1.78 | 1.83 | 1.75 | 1.78 | 1.79 | 1.81 | 1.75 | 1.75 | 1.77 | 1.80 | 1.84 | 1.69 | 1.70 | 1.51 | 1.54 | 1.60 | 1.58 | 1.61 | 1.62 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,063,700K ÷ $6,302,160K
= 1.76
The financial leverage ratio of STERIS plc has shown some fluctuations over the past few quarters. The ratio has ranged from a low of 1.51 to a high of 1.84 during the period under review. Generally, a financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing.
Based on the data provided, the financial leverage ratio has been hovering around the range of 1.70 to 1.80 in recent quarters, with slight variations. This suggests that STERIS plc maintains a moderate level of financial leverage, balanced between debt and equity. However, it is essential to monitor any significant changes in the ratio, as a substantial increase may indicate increased financial risk due to higher debt levels. Conversely, a significant decrease could signal a more conservative debt structure.
Overall, STERIS plc's financial leverage ratio provides insights into the firm's capital structure and the proportion of debt used to finance its operations. Additional analysis, including a comparison with industry peers and trend analysis, would provide a more comprehensive understanding of the company's leverage position.
Peer comparison
Mar 31, 2024