Metallus, Inc (MTUS)

Short-term

Turnover ratios

The inventory turnover ratio for Metallus, Inc has exhibited fluctuations over the past few years, ranging between 3.98 and 6.25. The ratio indicates the number of times the company's inventory is sold and replaced during a specific period. A higher inventory turnover ratio suggests efficient inventory management, and Metallus, Inc experienced an improvement in this aspect from 2021 to 2022, reaching a peak of 6.25 on December 31, 2022. However, there was a slight decline by the end of 2024 to 4.49, indicating a potential slowdown in inventory turnover.

On the other hand, the receivables turnover and payables turnover ratios are not provided in the data, which limits our ability to assess the efficiency of Metallus, Inc's accounts receivable and accounts payable management.

The working capital turnover ratio, which measures the efficiency of working capital management, saw a gradual decline from 2020 to 2024, ranging from 4.08 to 3.54. This downward trend suggests that the company may be facing challenges in effectively utilizing its working capital to generate sales.

Overall, while the inventory turnover ratio shows some positive aspects of inventory management efficiency, the lack of data on receivables turnover and payables turnover ratios hinders a comprehensive assessment of Metallus, Inc's overall activity ratios. The decreasing trend in the working capital turnover ratio suggests a need for the company to focus on optimizing its working capital utilization in order to improve operational efficiency.

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Average number of days

Metallus, Inc's activity ratios provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- The DOH measures how many days it takes for the company to sell its inventory.
- Metallus, Inc's average DOH over the past few quarters has varied, ranging from 58.37 days to 91.77 days.
- A decreasing trend in DOH is generally seen as positive as it indicates faster inventory turnover, but fluctuations in this ratio could indicate changing demand or production inefficiencies.

2. Days of Sales Outstanding (DSO):
- Unfortunately, data for DSO is not available, which makes it difficult to assess how long it takes for Metallus, Inc to collect its accounts receivables.
- Typically, a lower DSO indicates quicker collection of receivables and better cash flow management.

3. Number of Days of Payables:
- Similar to DSO, there is no data available for the number of days of payables for Metallus, Inc.
- A longer payables period suggests the company is taking longer to pay its suppliers, which can sometimes indicate strained cash flow.

In conclusion, while the information available offers some insights into Metallus, Inc's efficiency in managing its inventory, the lack of data for DSO and payables makes it challenging to provide a comprehensive analysis of the company's overall activity ratios.

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Long-term

The long-term activity ratios of Metallus, Inc provide insight into how effectively the company is utilizing its assets over an extended period.

1. Fixed Asset Turnover: This ratio measures the company's ability to generate sales from its fixed assets. Metallus, Inc's fixed asset turnover ratio has shown an increasing trend from 1.76 in March 31, 2020, to a peak of 2.96 in June 30, 2022, before stabilizing around 2.56 in the subsequent periods. This indicates that the company has been more efficient in generating revenue from its fixed assets over time.

2. Total Asset Turnover: The total asset turnover ratio reflects how efficiently the company is utilizing all its assets to generate sales. Metallus, Inc's total asset turnover ratio fluctuated initially, starting from 1.03 in March 31, 2020, dipping to 0.81 by March 31, 2021, and then gradually improving to 1.16 by March 31, 2024. This suggests that the company has made strides in using its assets more effectively to drive revenue growth, albeit with some variability.

Overall, the trends in both fixed asset turnover and total asset turnover ratios indicate that Metallus, Inc has improved its efficiency in generating sales from its assets over the long term. A rising fixed asset turnover ratio coupled with a fluctuating but generally improving total asset turnover ratio suggests that the company has managed its asset utilization effectively, leading to increased productivity and potential for enhanced financial performance.