United States Steel Corporation (X)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover	7.76	7.40	6.96	7.30	7.09
Receivables turnover	—	12.88	9.71	9.80	13.53
Payables turnover	—	—	—	—	—
Working capital turnover	6.03	5.39	6.14	5.48	10.89

United States Steel Corp.'s activity ratios, specifically inventory turnover, receivables turnover, payables turnover, and working capital turnover, provide insights into the company's operational efficiency and management of assets and liabilities.

1. Inventory turnover:
- The inventory turnover ratio shows the number of times a company sells and replaces its inventory within a specific period.
- United States Steel Corp. improved its inventory turnover from 6.77 in 2019 to 7.43 in 2023, indicating that the company is managing its inventory more efficiently in recent years.

2. Receivables turnover:
- This ratio measures how quickly a company collects its accounts receivable.
- United States Steel Corp.'s receivables turnover has fluctuated over the years, but generally remained within a healthy range, with a higher turnover indicating more efficient collection practices.

3. Payables turnover:
- The payables turnover ratio reflects how quickly a company pays its suppliers for credit purchases.
- A high payables turnover, as seen in United States Steel Corp.'s case, such as 113.69 in 2023, indicates that the company is paying its suppliers more frequently, potentially benefiting from favorable credit terms or efficiently managing trade payables.

4. Working capital turnover:
- This ratio shows how effectively a company utilizes its working capital to generate revenue.
- United States Steel Corp.'s working capital turnover has fluctuated over the years, with a significant decrease in 2019 followed by varying levels in subsequent years. A higher turnover indicates efficient utilization of working capital in generating sales.

Overall, the trend in these activity ratios for United States Steel Corp. suggests improvements in inventory management and efficiency in collections and payments. Analyzing these ratios helps investors and stakeholders assess the company's operational performance and financial health.

Average number of days

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	47.04	49.34	52.43	49.97	51.49
Days of sales outstanding (DSO)	days	—	28.33	37.61	37.25	26.97
Number of days of payables	days	—	—	—	—	—

United States Steel Corp.'s activity ratios show fluctuations over the past five years.

- Days of Inventory on Hand (DOH): The company has been able to reduce its days of inventory on hand from 55.50 days in 2021 to 49.15 days in 2023. This indicates that the company is managing its inventory more efficiently, potentially reducing carrying costs and improving cash flow.

- Days of Sales Outstanding (DSO): The days of sales outstanding have also varied, with a decrease from 37.61 days in 2021 to 31.30 days in 2023. A lower DSO suggests that the company is getting paid faster, improving its cash flow and liquidity position.

- Number of Days of Payables: The number of days of payables has fluctuated over the years, with a noticeable increase in 2020 and a decrease in 2023 compared to the previous years. A lower number of days of payables means the company is paying its suppliers more quickly, which can strain its cash flow but may enhance relationships with suppliers.

In general, the trend in these activity ratios indicates that United States Steel Corp. has been making efforts to improve its working capital management and operational efficiency over the years.

Long-term

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fixed asset turnover	1.74	2.48	2.80	1.79	2.38
Total asset turnover	0.88	1.08	1.14	0.81	1.11

United States Steel Corp.'s long-term activity ratios provide insights into the company's efficiency in utilizing its fixed assets and total assets to generate revenue over the past five years.

The fixed asset turnover ratio declined from 2.48 in 2022 to 1.74 in 2023. This indicates that the company generated $1.74 in revenue for every dollar invested in fixed assets in 2023, compared to $2.48 in 2022. The decrease in the fixed asset turnover suggests a lower level of efficiency in utilizing fixed assets to generate sales.

On the other hand, the total asset turnover ratio decreased from 1.08 in 2022 to 0.88 in 2023. This implies that the company generated $0.88 in revenue for every dollar of total assets in 2023, compared to $1.08 in 2022. The decline in total asset turnover indicates a reduction in the company's ability to generate sales relative to its total asset base.

Overall, United States Steel Corp.'s long-term activity ratios reveal a declining trend in both fixed asset turnover and total asset turnover, indicating a decrease in efficiency in generating revenue from its assets. This trend may prompt further investigation into the factors impacting the company's asset utilization and operational efficiency.