Metallus Inc (MTUS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.54 | 6.66 | 5.50 | 5.04 | 4.62 |
| Receivables turnover | 11.71 | 15.37 | 12.69 | 13.32 | 15.85 |
| Payables turnover | 9.47 | 11.31 | 8.18 | 10.05 | 18.79 |
| Working capital turnover | 3.25 | 3.39 | 3.85 | 4.78 | 4.24 |
Based on the activity ratios of Metallus Inc over the past five years, there are some notable trends to consider:
1. Inventory Turnover: The inventory turnover ratio has been relatively stable, ranging from 4.62 to 6.66. A higher inventory turnover ratio indicates that the company is efficiently managing its inventory levels and selling its products quickly.
2. Receivables Turnover: The receivables turnover ratio has shown a decreasing trend over the years, from 15.85 in 2019 to 11.71 in 2023. A declining ratio suggests that the company is taking longer to collect its accounts receivable, which could impact its cash flow.
3. Payables Turnover: The payables turnover ratio has fluctuated over the years, with a significant decrease in 2020 followed by an increase in 2021. The ratio of payables turnover indicates how quickly the company is paying off its suppliers. A lower ratio may suggest that the company is taking longer to pay its bills.
4. Working Capital Turnover: The working capital turnover ratio has been on a downward trend from 4.78 in 2020 to 3.25 in 2023. This ratio measures how effectively the company is using its working capital to generate sales. A decreasing ratio could indicate inefficiencies in managing working capital or potential liquidity challenges.
Overall, while the inventory turnover of Metallus Inc appears to be relatively stable, there are signs of inefficiencies in managing receivables, payables, and working capital turnover. It is important for the company to monitor these ratios closely and implement strategies to improve operational efficiency and cash flow management.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 65.90 | 54.84 | 66.32 | 72.36 | 79.03 |
| Days of sales outstanding (DSO) | days | 31.16 | 23.75 | 28.76 | 27.39 | 23.03 |
| Number of days of payables | days | 38.53 | 32.26 | 44.62 | 36.30 | 19.43 |
Activity ratios provide insight into how effectively a company manages its assets and liabilities to generate revenue. Let's analyze the activity ratios of Metallus Inc based on the provided data:
1. Days of Inventory on Hand (DOH): This ratio indicates how many days it takes for the company to sell its inventory. A lower DOH is generally favorable as it signifies efficient inventory management. Over the past five years, Metallus Inc's DOH has fluctuated, with 2022 showing the lowest DOH at 54.84 days. However, in 2023, the DOH increased to 65.90 days, indicating that the company held inventory for a longer period compared to previous years.
2. Days of Sales Outstanding (DSO): DSO measures how long it takes for the company to collect revenue after a sale. A lower DSO indicates faster collection of receivables. Metallus Inc's DSO has varied over the years, with spikes in 2021 and 2023. The highest DSO was recorded in 2021 at 28.76 days, suggesting delays in collecting payments. However, in 2023, the DSO increased further to 31.16 days, implying a longer collection period for sales made.
3. Number of Days of Payables: This ratio assesses the number of days the company takes to pay its creditors. A higher number of days of payables indicates that the company is taking longer to settle its payables, which can be beneficial for cash flow management. Metallus Inc's days of payables have shown inconsistency over the years, with a significant increase in 2021 and 2023. The highest number of days of payables was observed in 2021 at 44.62 days, indicating delayed payments to creditors. In 2023, the days of payables further increased to 38.53 days, suggesting prolonged payment cycles.
In conclusion, the activity ratios of Metallus Inc reflect fluctuations in inventory management, collection of receivables, and payment cycles over the past five years. Managing these ratios effectively is crucial for optimizing working capital and enhancing overall financial performance.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 2.70 | 2.58 | 2.50 | 1.48 | 1.96 |
| Total asset turnover | 1.13 | 1.16 | 1.10 | 0.85 | 1.13 |
The long-term activity ratios for Metallus Inc over the past five years show fluctuations in both the fixed asset turnover and total asset turnover ratios.
The fixed asset turnover ratio, which measures how efficiently the company generates sales from its investments in fixed assets, has been increasing steadily, from 1.96 in 2019 to 2.70 in 2023. This indicates that Metallus has been able to generate more revenue from its fixed assets over time, reflecting improved efficiency in utilizing its long-term assets to generate sales.
On the other hand, the total asset turnover ratio, which measures how effectively the company is utilizing all its assets to generate sales, has shown more variability. The ratio decreased from 1.13 in 2019 to 0.85 in 2020, but then showed improvement in the following years, reaching 1.13 in 2023. This suggests that although there was a temporary dip in asset utilization in 2020, the company has since managed to better leverage its total assets to generate sales.
Overall, the increasing trend in the fixed asset turnover ratio coupled with the recovery and improvement in the total asset turnover ratio indicate that Metallus Inc has been making more efficient use of its long-term assets to drive revenue growth and improve overall asset utilization efficiency over the past five years.