United States Steel Corporation (X)

Working capital 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
Revenue (ttm)	US$ in thousands	15,640,000	16,275,000	16,853,000	17,743,000	18,053,000	18,247,000	19,019,000	20,301,000	21,065,000	22,349,000	23,110,000	21,845,000	20,275,000	17,215,000	13,591,000	10,657,000	9,741,000	10,003,000	10,732,000	12,186,000
Total current assets	US$ in thousands	5,232,000	5,766,000	5,950,000	6,421,000	6,943,000	7,395,000	7,835,000	7,548,000	7,866,000	8,452,000	9,035,000	8,380,000	7,152,000	6,799,000	5,638,000	4,250,000	4,432,000	4,244,000	4,924,000	4,686,000
Total current liabilities	US$ in thousands	3,373,000	3,452,000	3,456,000	3,748,000	3,948,000	3,801,000	4,072,000	4,015,000	3,959,000	4,162,000	4,568,000	4,405,000	3,852,000	4,030,000	4,451,000	3,144,000	2,656,000	2,463,000	2,141,000	2,777,000
Working capital turnover		8.41	7.03	6.76	6.64	6.03	5.08	5.05	5.75	5.39	5.21	5.17	5.50	6.14	6.22	11.45	9.64	5.48	5.62	3.86	6.38

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,640,000K ÷ ($5,232,000K – $3,373,000K)
= 8.41

The working capital turnover of United States Steel Corporation indicates the efficiency with which the company is utilizing its working capital to generate sales revenue. From the data provided, we can observe fluctuations in the working capital turnover ratio over the reporting periods.

In March 2020, the working capital turnover was 6.38, indicating that for every dollar of working capital, the company generated $6.38 of revenue. This ratio decreased to 3.86 by June 2020, suggesting a potential slowdown in the company's working capital efficiency. However, the ratio improved to 9.64 in March 2021 and peaked at 11.45 in June 2021, indicating a significant increase in efficiency during that period.

Subsequently, the working capital turnover ratio fluctuated between 5.17 and 8.41 from June 2022 to December 2024. The ratios suggest that the company was able to efficiently manage its working capital to generate sales revenue during these periods.

Overall, analyzing the working capital turnover of United States Steel Corporation provides insights into the company's operational efficiency and its ability to leverage working capital effectively. The fluctuations in the ratio over the reporting periods should be further investigated to understand the underlying reasons and implications for the company's financial performance.