Financial Analysis of Steris Corporation

Running head: FINANCE
Finance
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1FINANCE
Table of Contents
STERIS Corporation........................................................................................................................2
Introduction..................................................................................................................................2
Risk Analysis...............................................................................................................................2
Beta Analysis...............................................................................................................................3
Analyst Opinion...........................................................................................................................4
Optimum Capital Structure..........................................................................................................6
Conclusion...................................................................................................................................7
References........................................................................................................................................8

2FINANCE
STERIS Corporation
Introduction
Steris Plc is a leading provider in health products and services providing infection
prevention and other various procedural products. The company was found in the year 1985 and
offers a variety of mix of innovative capital equipment products, which includes surgical tables,
sterilizers, equipment management solutions and various other connectivity solutions. The
company also offers various consumables health products. The company is listed in the
NASDAQ Stock Exchange with its ticker symbol as “STE” and the current share price of the
company is around $120.03.
Risk Analysis
Business Risk and Financial Risk are the two common risks that are associated with a
company. The business risk associated with the Steris Plc. Company is in the form of rising
operational cost and falling operating margins could be the key example. The financial
performance of the company on the overall basis in the current year 2018 has been
comparatively better than the year 2017. However, Macro-Economic Risks, Legal Changes and
Technological Changes are the key risks that can indirectly influence the operations of the
company (Williams & Dobelman, 2017). On the one hand rising global demand for the health
care industry due to growing population and greater prevalence of chronic disease has been the
key reason for growing demand in health care industry in US. The rise in the level of interest
rates, level of inflation and changing macro-economic policies are some of the key factors that
needs to be taken into consideration. The changing health related regulatory changes are some of
the legal risks faced by the company. Companies operating in the health industry faces a