United States Steel Corporation (X)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	14,532,000	15,288,000	15,705,000	16,225,000	16,491,000	16,379,000	16,882,000	17,557,000	17,446,000	13,464,000	12,976,000	11,878,000	11,103,000	13,489,000	11,860,000	10,442,000	10,244,000	10,837,000	11,498,000	12,384,000
Inventory	US$ in thousands	2,168,000	2,039,000	2,020,000	2,157,000	2,128,000	2,304,000	2,540,000	2,541,000	2,359,000	2,759,000	3,014,000	2,663,000	2,210,000	2,086,000	1,914,000	1,750,000	1,402,000	1,398,000	1,634,000	2,075,000
Inventory turnover		6.70	7.50	7.77	7.52	7.75	7.11	6.65	6.91	7.40	4.88	4.31	4.46	5.02	6.47	6.20	5.97	7.31	7.75	7.04	5.97

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $14,532,000K ÷ $2,168,000K
= 6.70

The inventory turnover of United States Steel Corporation has fluctuated over the analyzed periods, ranging from a low of 4.31 to a high of 7.77. The inventory turnover ratio indicates the number of times a company sells and replaces its inventory within a specific time frame. A higher inventory turnover ratio suggests that the company is selling its inventory more efficiently.

From the data provided, we can observe that there was a general upward trend in inventory turnover from the beginning of the analysis period, peaking at 7.77 on June 30, 2024. This indicates that the company was effectively managing its inventory and converting it into sales during this period.

However, there was a slight decline in inventory turnover in the subsequent periods, with the ratio decreasing to 6.70 on December 31, 2024. This may suggest that the company either had excess inventory on hand or experienced difficulties in selling its products during that time.

Overall, the inventory turnover ratio for United States Steel Corporation demonstrates variability over the analyzed periods, reflecting changes in the company's inventory management efficiency and sales performance. It is important for the company to monitor and optimize its inventory turnover to ensure effective utilization of resources and maximize profitability.