United States Steel Corporation (X)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	14,542,000	16,511,000	17,452,000	15,386,000	10,241,000
Inventory	US$ in thousands	2,168,000	2,128,000	2,359,000	2,210,000	1,402,000
Inventory turnover		6.71	7.76	7.40	6.96	7.30

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $14,542,000K ÷ $2,168,000K
= 6.71

United States Steel Corporation's inventory turnover has shown some fluctuations over the past five years. The ratio indicates the number of times the company's inventory is sold and replaced during a specific period.

In December 31, 2020, the inventory turnover was 7.30, reflecting a relatively efficient management of inventory. However, in the following year, by December 31, 2021, the turnover decreased to 6.96, suggesting a slight decline in the efficiency of inventory management.

By December 31, 2022, the inventory turnover increased to 7.40, which may imply an improvement in inventory management practices. The trend continued as of December 31, 2023, with a further increase in inventory turnover to 7.76, indicating a potentially more efficient turnover of inventory.

However, by December 31, 2024, the inventory turnover decreased to 6.71, showing a decline in efficiency compared to the previous year.

Overall, the company's inventory turnover figures demonstrate some variability, with periods of improvement and slight declines. It is important for United States Steel Corporation to assess the reasons behind these fluctuations and work towards maintaining a consistent and efficient inventory turnover to optimize its operations and financial performance.