Olympic Steel Inc (ZEUS)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,871,937 | 1,920,416 | 2,032,192 | 2,150,510 | 2,249,441 | 2,324,308 | 2,317,303 | 2,178,796 | 1,968,866 | 1,712,048 | 1,416,734 | 1,174,206 | 1,096,090 | 1,090,150 | 1,164,116 | 1,319,545 | 1,404,842 | 1,511,357 | 1,568,192 | 1,574,165 |
| Inventory | US$ in thousands | 386,535 | 392,354 | 405,944 | 407,983 | 416,931 | 508,103 | 511,135 | 475,447 | 485,029 | 417,979 | 373,277 | 278,174 | 240,001 | 232,897 | 269,721 | 267,554 | 273,531 | 283,146 | 288,183 | 267,554 |
| Inventory turnover | 4.84 | 4.89 | 5.01 | 5.27 | 5.40 | 4.57 | 4.53 | 4.58 | 4.06 | 4.10 | 3.80 | 4.22 | 4.57 | 4.68 | 4.32 | 4.93 | 5.14 | 5.34 | 5.44 | 5.88 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,871,937K ÷ $386,535K
= 4.84
The inventory turnover for Olympic Steel Inc. has shown a fluctuating trend over the past eight quarters. The ratio ranged from a low of 4.18 in Q2 2022 to a high of 4.97 in Q4 2022. Overall, the company has maintained a relatively stable inventory turnover, with an average of approximately 4.40 during this period.
A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently, which is generally a positive sign. Olympic Steel Inc. has managed to keep its inventory turning over consistently, indicating effective inventory management practices.
However, it is worth noting that the recent decrease in inventory turnover from Q1 2023 to Q4 2023 may suggest that the company's inventory is taking longer to sell, which could potentially tie up capital and impact profitability. It would be important for the company to closely monitor this trend and consider strategies to optimize inventory turnover going forward.
Peer comparison
Dec 31, 2023
Dec 31, 2023