Metallus, Inc (MTUS)

Short-term

Turnover ratios

The analysis of Metallus, Inc activity ratios reveals trends and insights into the company's efficiency in managing its assets and working capital over the past five years.

1. Inventory Turnover:
- The inventory turnover ratio has shown some fluctuation over the years, ranging from 4.49 to 6.25.
- A higher inventory turnover ratio indicates that Metallus, Inc is selling its inventory more quickly.
- In 2022, the ratio peaked at 6.25, suggesting efficient management of inventory levels.

2. Receivables Turnover:
- The data provided shows that the company has not reported receivables turnover for any of the years.
- This may indicate that Metallus, Inc does not have significant accounts receivable or that the data was not disclosed.

3. Payables Turnover:
- Similar to receivables, the payables turnover ratio is not available for any of the years.
- This may suggest that the company does not provide information on how quickly it pays its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio has been relatively stable, staying between 3.34 and 4.70.
- A lower ratio indicates that the company's sales are not generating a high turnover relative to the working capital employed.
- The decrease in 2021 may imply that sales were not as strong relative to the working capital that year but improved in subsequent years.

Overall, while inventory turnover and working capital turnover ratios provide insights into efficiency, the lack of data for receivables and payables turnover limits a comprehensive analysis of Metallus, Inc's complete operational efficiency.

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Average number of days

The activity ratios of Metallus, Inc reveal insights into the efficiency of the company's operations:

1. Days of Inventory on Hand (DOH):
- The trend of DOH shows the number of days it takes for Metallus to sell its inventory. The company's DOH decreased from 79.89 days on December 31, 2020, to a low of 58.37 days on December 31, 2022, before increasing slightly to 81.34 days on December 31, 2024. A decreasing trend in DOH indicates that the company is managing its inventory more efficiently over time, except for the last year where there was an increase, potentially signaling a slowdown in sales or issues with inventory management.

2. Days of Sales Outstanding (DSO):
- The DSO ratio for Metallus, Inc, is not provided for the years ranging from 2020 to 2024. Without this information, it is challenging to assess the effectiveness of the company's credit sales collection process. However, typically, a lower DSO value would suggest a faster collection of accounts receivable and better cash flow management.

3. Number of Days of Payables:
- Similarly, the data does not include the Number of Days of Payables for the years from 2020 to 2024. This ratio would have indicated the number of days it takes for the company to pay its suppliers. Generally, a higher number of days of payables may suggest that the company is taking longer to pay its suppliers, potentially benefiting from favorable credit terms.

Overall, while the decrease in the DOH ratio indicates improved inventory management efficiency, the missing data for DSO and days of payables limits a comprehensive assessment of Metallus, Inc's activity ratios and the effectiveness of its working capital management.

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Long-term

The fixed asset turnover ratio for Metallus, Inc has shown consistent improvement over the years, from 1.46 in 2020 to 2.45 in 2021 and further to 2.68 in 2022. This indicates that the company is generating more revenue for each dollar invested in fixed assets, reflecting improved efficiency in utilizing its long-term assets for revenue generation.

However, data for 2023 and 2024 are unavailable, which limits the ability to track the trend further. It would be important to monitor this ratio in future financial reports to assess the continued efficiency of Metallus in utilizing its fixed assets for sales generation.

Regarding the total asset turnover ratio, Metallus, Inc has shown a positive trend from 0.84 in 2020 to 1.08 in 2021 and further to 1.21 in 2022. This suggests that the company is generating more revenue for each dollar invested in total assets, indicating an improvement in overall asset utilization efficiency.

However, a slight dip to 1.16 in 2023 followed by a decrease to 0.97 in 2024 points towards potential inefficiencies in asset utilization or a change in business strategy. Further analysis would be required to understand the factors contributing to this decline and whether they are indicative of potential long-term issues.

In conclusion, while Metallus, Inc has demonstrated consistent improvement in its fixed asset turnover ratio, the variation in the total asset turnover ratio in recent years could signal shifting dynamics in the company's asset management practices that merit closer monitoring and analysis.