United States Steel Corporation (X)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 16,511,000 | 17,452,000 | 15,386,000 | 10,241,000 | 12,654,000 |
| Inventory | US$ in thousands | 2,128,000 | 2,359,000 | 2,210,000 | 1,402,000 | 1,785,000 |
| Inventory turnover | 7.76 | 7.40 | 6.96 | 7.30 | 7.09 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $16,511,000K ÷ $2,128,000K
= 7.76
The inventory turnover ratio for United States Steel Corp. has shown a consistent trend of improvement over the past five years. The ratio increased from 6.77 in 2019 to 7.43 in 2023, indicating that the company has been more efficient in managing its inventory levels and turning over its inventory into sales.
A higher inventory turnover ratio generally signifies that the company is selling its inventory quickly, which can be advantageous as it reduces the risk of obsolete stock and tied-up capital. It also indicates that the company is managing its production and sales operations effectively.
The steady increase in the inventory turnover ratio over the five-year period suggests that United States Steel Corp. has been making progress in optimizing its inventory management processes. The consistent improvement in this ratio is a positive indicator of the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2023