Olympic Steel Inc (ZEUS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,158,010 | 2,562,110 | 2,318,270 | 1,232,060 | 1,579,250 |
| Property, plant and equipment | US$ in thousands | 186,108 | 148,332 | 147,056 | 157,200 | 156,793 |
| Fixed asset turnover | 11.60 | 17.27 | 15.76 | 7.84 | 10.07 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,158,010K ÷ $186,108K
= 11.60
Fixed asset turnover is a financial ratio that measures how efficiently a company generates revenue from its investment in fixed assets. A higher ratio indicates better utilization of fixed assets to generate sales.
In the case of Olympic Steel Inc., the fixed asset turnover has fluctuated over the past five years. In 2023, the ratio was 11.60, reflecting a decrease from the previous year's ratio of 17.26. This decline suggests that the company may be less efficient in generating sales from its fixed assets compared to the previous year.
Looking at the trend over the past five years, Olympic Steel Inc. has shown varying levels of efficiency in utilizing its fixed assets. The highest fixed asset turnover was recorded in 2022 at 17.26, indicating strong asset utilization. In contrast, the lowest ratio was in 2020 at 7.85, suggesting a potential inefficiency in generating revenue from fixed assets that year.
Overall, the trend in Olympic Steel Inc.'s fixed asset turnover indicates some fluctuations in asset utilization efficiency over the years. Further analysis and comparison with industry peers may provide additional insights into the company's operational performance and capital investment strategies.
Peer comparison
Dec 31, 2023