United States Steel Corporation (X)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 18,053,000 | 21,065,000 | 20,275,000 | 9,741,000 | 12,937,000 |
| Total current assets | US$ in thousands | 6,943,000 | 7,866,000 | 7,152,000 | 4,432,000 | 3,813,000 |
| Total current liabilities | US$ in thousands | 3,948,000 | 3,959,000 | 3,852,000 | 2,656,000 | 2,625,000 |
| Working capital turnover | 6.03 | 5.39 | 6.14 | 5.48 | 10.89 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $18,053,000K ÷ ($6,943,000K – $3,948,000K)
= 6.03
United States Steel Corp.'s working capital turnover ratio has fluctuated over the last five years, ranging from a low of 5.39 in 2022 to a high of 10.89 in 2019. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate revenue. A higher turnover ratio indicates that the company is managing its working capital effectively.
In this case, the significant decrease in the working capital turnover ratio in 2022 suggests that the company may have experienced challenges in efficiently using its working capital to support its operational activities. However, the ratio rebounded in 2023 to 6.03, indicating an improvement in the utilization of working capital to generate sales.
It is worth noting that the working capital turnover ratio should be analyzed in conjunction with other financial ratios and qualitative factors to gain a comprehensive understanding of United States Steel Corp.'s financial performance and efficiency in managing its working capital.
Peer comparison
Dec 31, 2023