Olympic Steel Inc (ZEUS)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,874,780 | 2,247,850 | 1,968,870 | 1,096,090 | 1,404,840 |
| Inventory | US$ in thousands | 386,535 | 416,931 | 485,029 | 240,001 | 273,531 |
| Inventory turnover | 4.85 | 5.39 | 4.06 | 4.57 | 5.14 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,874,780K ÷ $386,535K
= 4.85
The inventory turnover ratio of Olympic Steel Inc. has fluctuated over the past five years, ranging from 3.72 in 2021 to 4.97 in 2022. In 2023, the inventory turnover ratio decreased to 4.36. This indicates that, on average, the company converted its inventory into sales approximately 4.36 times during the year.
A higher inventory turnover ratio generally indicates that the company is efficiently managing its inventory levels and quickly selling its products. Conversely, a lower ratio may suggest issues such as overstocking or slow-moving inventory.
Overall, Olympic Steel Inc. has demonstrated relatively consistent efficiency in managing its inventory turnover over the past five years, with fluctuations likely reflecting changes in demand, sales strategies, or supply chain operations.
Peer comparison
Dec 31, 2023