Metallus, Inc (MTUS)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Revenue (ttm)	US$ in thousands	1,084,000	1,171,600	1,293,800	1,355,700	1,357,600	1,274,900	1,242,300	1,301,400	1,329,900	1,422,800	1,449,700	1,361,300	1,282,900	1,155,800	1,018,000	844,700	830,800	846,500	914,800	1,097,500
Total current assets	US$ in thousands	587,300	602,000	606,800	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
Total current liabilities	US$ in thousands	281,500	228,200	195,300	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
Working capital turnover		3.54	3.13	3.14	3.32	3.32	3.01	3.05	3.39	3.60	3.64	3.54	3.69	3.87	4.03	4.61	4.15	4.70	6.01	4.94	4.08

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,084,000K ÷ ($587,300K – $281,500K)
= 3.54

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively using its working capital to support its operations.

Analyzing the working capital turnover trend of Metallus, Inc over the given quarters, we can observe some fluctuations in the ratio. The trend shows that the working capital turnover ratio was relatively high in the third quarter of 2020 at 6.01, indicating efficient management of working capital during that period.

However, the ratio declined in subsequent quarters, reaching a low of 3.01 in the third quarter of 2023, which suggests a decrease in the efficiency of working capital utilization. This decline could be a result of various factors such as changes in sales volume, inventory management, or liquidity management.

Despite some fluctuations, the working capital turnover ratio generally ranged between 3.00 and 6.00 during the observed periods. It is essential for Metallus, Inc to closely monitor and manage its working capital to maintain an optimal balance between liquidity and operational efficiency. Further analysis of the company's financial performance and operational activities may provide insights into the factors driving the fluctuations in the working capital turnover ratio.