Metallus Inc (MTUS)

Working capital turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 1,329,300 1,253,800 1,275,600 843,400 1,228,200
Total current assets US$ in thousands 656,800 556,600 582,300 357,600 401,700
Total current liabilities US$ in thousands 248,400 186,700 250,800 181,000 112,300
Working capital turnover 3.25 3.39 3.85 4.78 4.24

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,329,300K ÷ ($656,800K – $248,400K)
= 3.25

Metallus Inc's working capital turnover has shown a fluctuating trend over the past five years. The ratio decreased from 4.24 in 2019 to 3.85 in 2021, indicating a decrease in the efficiency of using working capital to generate revenue during that period. However, there was an improvement in 2022 with the ratio increasing to 3.39, suggesting a better utilization of working capital.

In the most recent year, the working capital turnover further declined to 3.25, signaling a potential inefficiency in converting working capital into sales revenue compared to the previous year. This may raise concerns about the company's ability to effectively manage its working capital and generate revenue.

Overall, the fluctuating trend in working capital turnover ratios for Metallus Inc highlights the importance of monitoring and managing working capital efficiently to optimize operational performance and maximize profitability.