United States Steel Corporation (X)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	6.71	7.76	7.40	6.96	7.30
Receivables turnover	—	—	12.88	9.71	9.80
Payables turnover	—	—	—	—	—
Working capital turnover	8.41	6.03	5.39	6.14	5.48

Based on the provided data, we can analyze the activity ratios of United States Steel Corporation as follows:

1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory. United States Steel Corporation's inventory turnover has seen fluctuation over the years, with a slight decrease from 7.30 in 2020 to 6.71 in 2024. This may indicate that the company is taking longer to sell its inventory or is carrying excess inventory, which could tie up capital.

2. Receivables Turnover: The receivables turnover ratio evaluates how effectively a company is collecting its accounts receivable. United States Steel Corporation's receivables turnover improved from 9.80 in 2020 to 12.88 in 2022. However, data is unavailable for 2023 and 2024. A higher turnover ratio suggests that the company is collecting its receivables more quickly, which is a positive sign for cash flow.

3. Payables Turnover: Data is missing for the payables turnover ratio, which measures how quickly a company pays its suppliers. Without this information, we cannot assess how efficiently United States Steel Corporation is managing its accounts payable.

4. Working Capital Turnover: The working capital turnover ratio indicates how effectively a company is utilizing its working capital to generate sales. United States Steel Corporation's working capital turnover has shown an increasing trend from 5.48 in 2020 to 8.41 in 2024. A higher turnover ratio suggests that the company is efficiently using its working capital to generate revenue.

In summary, while the inventory turnover has slightly declined, the receivables turnover has improved, and the working capital turnover has shown a positive trend. Monitoring and managing these activity ratios will help United States Steel Corporation optimize its operations and cash flow management. The lack of data for payables turnover limits a comprehensive analysis of the company's overall efficiency in managing its working capital cycle.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	54.42	47.04	49.34	52.43	49.97
Days of sales outstanding (DSO)	days	—	—	28.33	37.61	37.25
Number of days of payables	days	—	—	—	—	—

Based on the data provided for United States Steel Corporation, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The DOH measures how many days it takes for a company to convert its inventory into sales.
- United States Steel Corporation's DOH has shown a slight increase over the years, from 49.97 days in 2020 to 54.42 days in 2024.
- A higher DOH may indicate inefficiencies in managing inventory levels or potential overstocking, which could tie up capital and impact profitability.

2. Days of Sales Outstanding (DSO):
- The DSO ratio reflects the average number of days it takes for a company to collect revenue after a sale is made.
- United States Steel Corporation's DSO decreased significantly from 37.25 days in 2020 to 28.33 days in 2022.
- A decreasing DSO generally suggests the company is collecting receivables more quickly, which could improve cash flow and working capital management.

3. Number of Days of Payables:
- Payables days indicate how long it takes a company to pay its suppliers.
- The data provided shows that United States Steel Corporation had no information available for the days of payables from 2020 to 2024.
- While not having payables data limits a full assessment of the company's payment practices, it could indicate that the company may not disclose this information or has a unique payment structure.

In summary, United States Steel Corporation has displayed varying trends in activity ratios over the years. The company has experienced an increase in inventory days, a decrease in sales outstanding days, and limited information on payables days. These trends highlight the importance of effective inventory management, efficient receivables collection, and potentially prompt payables practices for the company's overall financial performance and liquidity position.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	1.31	1.74	2.48	2.80	1.79
Total asset turnover	0.77	0.88	1.08	1.14	0.81

The fixed asset turnover ratio for United States Steel Corporation has shown fluctuations over the past five years. It increased from 1.79 in 2020 to 2.80 in 2021, indicating an improvement in the company's ability to generate sales revenue from its fixed assets. However, the ratio declined to 2.48 in 2022, followed by a more significant drop to 1.74 in 2023, and a further decrease to 1.31 in 2024. This decrement suggests a reduction in the efficiency of utilizing fixed assets to generate revenue, which could be a cause for concern.

On the other hand, the total asset turnover ratio reflects a similar pattern of variability. The ratio increased from 0.81 in 2020 to 1.14 in 2021, indicating a positive trend in the efficiency of utilizing total assets to generate sales. However, there was a decline to 1.08 in 2022, followed by a sharper decrease to 0.88 in 2023, and a further drop to 0.77 in 2024. These reductions suggest potential challenges in effectively utilizing the company's total assets to generate revenue, which could impact its overall operational efficiency and profitability.

In conclusion, the analysis of United States Steel Corporation's long-term activity ratios shows fluctuations in both fixed asset turnover and total asset turnover ratios over the past five years. These trends highlight the importance of closely monitoring and addressing factors affecting asset utilization efficiency to optimize the company's operational performance and financial health.