Metallus Inc (MTUS)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,262,800	1,280,600	1,160,700	899,900	1,302,000
Payables	US$ in thousands	133,300	113,200	141,900	89,500	69,300
Payables turnover		9.47	11.31	8.18	10.05	18.79

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,262,800K ÷ $133,300K
= 9.47

The payables turnover ratio for Metallus Inc has shown fluctuating trends over the past five years. In 2023, the payables turnover ratio decreased to 9.47 from 11.31 in 2022. This suggests that the company took longer to pay its suppliers compared to the previous year. However, it is important to note that a lower payables turnover ratio may also indicate improved negotiation terms with suppliers or better inventory management.

Comparing to 2021 and 2020, the payables turnover ratio increased from 8.18 to 10.05. This indicates that in 2021, the company managed to pay its suppliers more frequently compared to the previous year. Additionally, the improvement in the payables turnover ratio from 2020 to 2021 suggests more efficient working capital management.

The significant drop in the payables turnover ratio from 18.79 in 2019 to 10.05 in 2020 could indicate a change in the company's payment policies or delays in payment to suppliers. This abrupt decrease should be further investigated to understand the underlying reasons and assess the potential risks associated with the change.

Overall, the payables turnover ratio provides insights into how efficiently Metallus Inc is managing its accounts payable and relationships with suppliers. Investors and stakeholders may want to delve deeper into the factors influencing these fluctuations to better understand the company's financial health and operational efficiency.