United States Steel Corporation (X)

Cash conversion cycle

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Days of inventory on hand (DOH) days 47.04 49.34 52.43 49.97 51.49
Days of sales outstanding (DSO) days 28.33 37.61 37.25 26.97
Number of days of payables days
Cash conversion cycle days 47.04 77.67 90.03 87.21 78.46

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 47.04 + — – —
= 47.04

The cash conversion cycle of United States Steel Corp. has varied over the past five years, with the most recent figure of 77.24 days showing a slight improvement compared to the previous year.

The cash conversion cycle represents the time it takes for a company to convert its investments in raw materials into cash inflows from sales, considering the time it takes to sell inventory, collect receivables, and pay suppliers.

A lower cash conversion cycle indicates that the company is more efficient in managing its working capital, while a higher cycle may suggest inefficiencies in its operations. In this case, the company has generally maintained its cycle within a relatively narrow range, which could indicate stable working capital management practices.

Overall, while there have been fluctuations in the cash conversion cycle, United States Steel Corp. seems to be effectively managing its working capital to balance the conversion of raw materials into cash inflows.


Peer comparison

Dec 31, 2023


See also:

United States Steel Corporation Cash Conversion Cycle