United States Steel Corporation (X)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	12,652,000	12,873,000	13,107,000	13,011,000
Inventory	US$ in thousands	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	1,785,000	2,071,000	2,166,000	2,133,000
Inventory turnover		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	7.09	6.22	6.05	6.10

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $16,491,000K ÷ $2,128,000K
= 7.75

United States Steel Corp.'s inventory turnover has been relatively stable over the past eight quarters, ranging from 5.39 to 7.43. The inventory turnover ratio measures how efficiently the company is managing its inventory levels and converting them into sales.

A higher inventory turnover indicates that the company is selling its inventory more quickly, which is generally positive as it reduces the risk of inventory obsolescence and carrying costs.

In the case of United States Steel Corp., the average inventory turnover ratio over the eight quarters is approximately 6.55. This suggests that, on average, the company is able to sell and replace its inventory about 6.55 times a year.

Overall, a consistent inventory turnover ratio like that of United States Steel Corp. indicates effective inventory management practices and suggests that the company is efficiently utilizing its resources to generate sales.