STERIS plc (STE)

Solvency ratios

	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
Debt-to-assets ratio	0.28	0.28	0.30	0.27	0.28	0.28	0.27	0.25	0.26	0.27	0.29	0.27	0.25	0.26	0.19	0.19	0.21	0.21	0.23	0.23
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
Debt-to-equity ratio	0.50	0.50	0.54	0.46	0.50	0.50	0.50	0.44	0.45	0.48	0.52	0.50	0.43	0.44	0.28	0.29	0.34	0.34	0.37	0.37
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

The solvency ratios of STERIS plc, as indicated by the debt-to-assets ratio, debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio, have shown some fluctuations over the past few quarters.

The debt-to-assets ratio has ranged from 0.19 to 0.30 over the last five quarters, indicating that, on average, around 25% to 30% of the company's assets are financed by debt during this period.

The debt-to-capital ratio has hovered between 0.22 and 0.35, suggesting that the company's capital structure is comprised of debt to the extent of 22% to 35%, with the rest being financed through equity or other sources.

The debt-to-equity ratio has shown variations between 0.28 and 0.54, signifying that shareholders' equity has been used to finance a varying proportion of the company's assets, while the remainder has been covered by debt.

The financial leverage ratio has fluctuated between 1.51 and 1.83, highlighting the company's level of financial risk and the extent to which it relies on debt financing in relation to its equity.

Overall, STERIS plc's solvency ratios indicate a relatively stable financial position with manageable levels of debt relative to assets, capital, equity, and the company's overall leverage. However, monitoring these ratios over time is crucial to assess the company's ongoing financial health and ability to meet its long-term obligations.

Coverage ratios

	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
Interest coverage	4.61	5.91	6.16	2.54	2.47	1.35	1.61	6.31	4.52	5.88	6.27	8.69	14.93	15.44	14.95	13.90	13.38	12.61

The interest coverage ratio for STERIS plc has shown fluctuations over the past 18 quarters. The ratio measures the company's ability to cover its interest expenses with its operating income.

In the most recent quarter, as of March 31, 2024, the interest coverage ratio was 4.61, indicating that STERIS plc generated operating income 4.61 times greater than its interest expenses in that period. This represents a decrease from the previous quarter's ratio of 5.91.

Looking at the trend over the past few quarters, the interest coverage ratio has generally been at healthy levels, consistently above 1, which is considered a minimum threshold for financial health. However, there have been periods of fluctuation, such as in the third quarter of 2022 and the first quarter of 2021, where the ratio fell below 2, signaling a lower ability to cover interest costs with operating income.

Overall, STERIS plc's interest coverage ratio has shown variability over time, indicating fluctuations in its ability to comfortably meet its interest obligations. It is important for investors and stakeholders to monitor these fluctuations to assess the company's financial stability and ability to manage its debt effectively.