Olympic Steel Inc (ZEUS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,158,010 | 2,562,110 | 2,318,270 | 1,232,060 | 1,579,250 |
| Receivables | US$ in thousands | 191,149 | 219,789 | 284,570 | 151,601 | 133,572 |
| Receivables turnover | 11.29 | 11.66 | 8.15 | 8.13 | 11.82 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,158,010K ÷ $191,149K
= 11.29
The receivables turnover ratio measures how efficiently Olympic Steel Inc. collects cash from its credit sales during a specific period. A higher receivables turnover ratio generally indicates that the company is collecting outstanding receivables more quickly.
Based on the data provided:
- The receivables turnover ratio has shown fluctuations over the past five years, ranging from 8.13 to 11.82.
- In 2023, the company's receivables turnover decreased slightly to 11.29 compared to 11.65 in 2022.
- However, Olympic Steel Inc. still demonstrates a strong ability to collect outstanding receivables promptly, as indicated by the consistently high ratios in recent years.
- The company's ability to efficiently manage its accounts receivable is crucial for maintaining cash flow and liquidity.
Overall, Olympic Steel Inc. has maintained a relatively stable and healthy receivables turnover ratio over the past five years, suggesting effective credit management practices and a strong focus on timely collection of receivables.
Peer comparison
Dec 31, 2023