Olympic Steel Inc (ZEUS)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,158,415 | 2,188,626 | 2,296,673 | 2,436,607 | 2,562,123 | 2,666,666 | 2,700,688 | 2,547,576 | 2,312,156 | 2,019,138 | 1,650,603 | 1,342,836 | 1,234,034 | 1,222,227 | 1,306,544 | 1,487,405 | 1,579,022 | 1,688,872 | 1,761,623 | 1,785,395 |
| Property, plant and equipment | US$ in thousands | 186,108 | 174,219 | 174,991 | 172,660 | 148,332 | 147,133 | 146,946 | 143,594 | 147,056 | 147,275 | 152,019 | 154,624 | 157,200 | 147,613 | 150,628 | 155,895 | 156,793 | 158,044 | 159,211 | 161,707 |
| Fixed asset turnover | 11.60 | 12.56 | 13.12 | 14.11 | 17.27 | 18.12 | 18.38 | 17.74 | 15.72 | 13.71 | 10.86 | 8.68 | 7.85 | 8.28 | 8.67 | 9.54 | 10.07 | 10.69 | 11.06 | 11.04 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,158,415K ÷ $186,108K
= 11.60
The fixed asset turnover ratio for Olympic Steel Inc. has exhibited a declining trend over the past eight quarters, as indicated by the decreasing values from 17.73 in Q1 2022 to 11.60 in Q4 2023. This suggests that the company's ability to generate sales revenue from its fixed assets has weakened over time.
A high fixed asset turnover ratio typically indicates efficient utilization of fixed assets to generate sales, which was evident in Q2 2022 and Q3 2022 with ratios of 18.36 and 18.11, respectively. However, the ratio has gradually decreased since then, reaching its lowest point in Q4 2023.
The declining trend in fixed asset turnover may be attributed to various factors such as aging fixed assets, inefficient asset utilization, or changes in the company's operating environment. It may be prudent for investors and stakeholders to further investigate the reasons behind this trend and assess the company's capital investment and operational strategies to improve asset efficiency and profitability.
Peer comparison
Dec 31, 2023