United States Steel Corporation (X)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	54.45	48.68	46.95	48.52	47.10	51.34	54.92	52.83	49.35	74.79	84.78	81.83	72.65	56.45	58.90	61.17	49.95	47.09	51.87	61.16
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	28.33	33.24	41.10	40.35	37.61	50.95	53.98	55.45	37.25	40.10	31.94	35.10
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	54.45	48.68	46.95	48.52	47.10	51.34	54.92	52.83	77.68	108.03	125.88	122.18	110.26	107.39	112.89	116.62	87.20	87.19	83.81	96.26

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 54.45 + — – —
= 54.45

The cash conversion cycle of United States Steel Corporation has shown fluctuations over the reporting periods. The company's cash conversion cycle measures the time it takes for the company to convert its investments in raw materials into cash from sales of finished goods.

From March 31, 2020, to December 31, 2024, the cash conversion cycle varied significantly, ranging from a high of 125.88 days in June 30, 2022, to a low of 47.10 days in December 31, 2023. A shorter cash conversion cycle is generally preferred as it indicates that the company is able to convert its investments into cash more quickly.

The trend in the cash conversion cycle seems volatile, with periods of a decrease followed by an increase. The company may need to analyze its inventory management, accounts receivable, and accounts payable processes to optimize its working capital efficiency.

Investors and analysts closely monitor the cash conversion cycle as it reflects the company's operational efficiency and liquidity management. A decreasing trend in the cash conversion cycle may indicate improved working capital management, while an increasing trend could point to potential inefficiencies.