Olympic Steel Inc (ZEUS)
Payables 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 |
| Payables | US$ in thousands | 119,718 | 101,446 | 148,649 | 87,291 | 69,452 |
| Payables turnover | 15.66 | 22.16 | 13.25 | 12.56 | 20.23 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,874,780K ÷ $119,718K
= 15.66
Olympic Steel Inc.'s payables turnover ratio has shown fluctuations over the past five years. The trend indicates how efficiently the company is managing its accounts payable. A higher payables turnover ratio generally signifies that the company is paying off its suppliers more frequently within a given period.
In 2023, the payables turnover ratio decreased to 14.07 from 20.44 in 2022. This drop may imply that the company took longer to pay off its suppliers compared to the previous year. However, a payables turnover of 14.07 is still relatively high, suggesting efficient management of accounts payable.
In 2021, the ratio increased to 12.12 from 11.22 in 2020, indicating an improvement in the company's ability to pay off its suppliers. The ratio spiked in 2022 to 20.44 from 12.12 in 2021, reflecting a significant increase in the efficiency of managing payables.
Overall, Olympic Steel Inc.'s payables turnover has shown varying trends, but the company's ability to efficiently manage its accounts payable has generally been favorable, especially when compared to previous years. This indicates effective working capital management and strong relationships with suppliers.
Peer comparison
Dec 31, 2023