Metallus Inc (MTUS)

Working capital turnover

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Revenue (ttm)	US$ in thousands	1,350,100	1,329,300	1,232,100	1,191,500	1,223,800	1,253,800	1,374,100	1,401,200	1,337,600	1,275,500	1,151,000	1,011,500	836,600	821,400	837,100	904,500	1,086,500	1,196,700	1,376,200	1,511,300
Total current assets	US$ in thousands	647,700	656,800	630,500	626,700	614,700	556,600	582,500	669,600	615,200	582,300	529,400	456,300	430,400	357,600	343,800	355,100	412,100	401,700	418,000	482,300
Total current liabilities	US$ in thousands	239,100	248,400	207,000	219,800	231,000	186,700	191,900	260,000	246,200	250,800	242,500	235,700	227,100	181,000	202,900	169,900	143,400	112,300	122,500	155,000
Working capital turnover		3.30	3.25	2.91	2.93	3.19	3.39	3.52	3.42	3.62	3.85	4.01	4.59	4.12	4.65	5.94	4.88	4.04	4.14	4.66	4.62

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,350,100K ÷ ($647,700K – $239,100K)
= 3.30

The working capital turnover ratio for Metallus Inc has been fluctuating over the past several quarters, indicating changes in how efficiently the company is utilizing its working capital to generate sales.

The ratio peaked at 5.94 in September 2020, reflecting a high level of efficiency in converting working capital into revenue. Since then, the ratio has shown a decreasing trend, reaching a low of 2.91 in September 2023. This suggests a potential deterioration in the company's ability to efficiently utilize its working capital during that period.

Although there have been fluctuations, the working capital turnover ratio has generally remained above 3.00 over the periods analyzed. A ratio above 1.00 indicates that the company is effectively using its working capital to generate revenues.

It is important for Metallus Inc to closely monitor its working capital turnover ratio to ensure optimal efficiency in managing its working capital and maximizing its sales generation. The company may consider implementing strategies to improve this ratio, such as streamlining operations, optimizing inventory management, or revising credit policies.