Olympic Steel Inc (ZEUS)
Payables 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 |
| Payables | US$ in thousands | 119,718 | 127,671 | 124,087 | 142,608 | 101,446 | 167,081 | 182,410 | 163,449 | 148,649 | 160,034 | 154,390 | 122,485 | 87,291 | 69,665 | 65,933 | 82,962 | 69,452 | 89,293 | 70,457 | 99,524 |
| Payables turnover | 15.64 | 15.04 | 16.38 | 15.08 | 22.17 | 13.91 | 12.70 | 13.33 | 13.25 | 10.70 | 9.18 | 9.59 | 12.56 | 15.65 | 17.66 | 15.91 | 20.23 | 16.93 | 22.26 | 15.82 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,871,937K ÷ $119,718K
= 15.64
The payables turnover ratio measures how efficiently Olympic Steel Inc. is managing its accounts payable by calculating how many times the company pays its suppliers within a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.
Looking at the data provided, Olympic Steel Inc.'s payables turnover ratio has fluctuated over the past eight quarters. In Q4 2023, the payables turnover ratio was 14.07, which was higher compared to the previous quarter at 13.63. This increase suggests that the company has improved its efficiency in paying its suppliers during Q4 2023.
Comparing year-over-year performance, the Q4 2023 payables turnover ratio of 14.07 is significantly lower than the ratio of 20.44 in Q4 2022. This indicates that Olympic Steel Inc. may be taking longer to pay its suppliers in Q4 2023 compared to the same period the previous year.
Overall, Olympic Steel Inc. should continue to monitor its payables turnover ratio to ensure that it strikes the right balance between managing cash flow effectively and maintaining good relationships with its suppliers.
Peer comparison
Dec 31, 2023