Olympic Steel Inc (ZEUS)
Total asset 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,158,415 | 2,188,626 | 2,296,673 | 2,436,607 | 2,562,123 | 2,666,666 | 2,700,688 | 2,547,576 | 2,312,156 | 2,019,138 | 1,650,603 | 1,342,836 | 1,234,034 | 1,222,227 | 1,306,544 | 1,487,405 | 1,579,022 | 1,688,872 | 1,761,623 | 1,785,395 |
| Total assets | US$ in thousands | 984,835 | 992,806 | 1,013,980 | 1,026,790 | 891,627 | 1,036,980 | 1,086,120 | 1,043,700 | 1,023,570 | 1,043,700 | 887,689 | 738,359 | 1,023,570 | 619,303 | 643,135 | 677,967 | 649,555 | 698,743 | 724,405 | 799,362 |
| Total asset turnover | 2.19 | 2.20 | 2.27 | 2.37 | 2.87 | 2.57 | 2.49 | 2.44 | 2.26 | 1.93 | 1.86 | 1.82 | 1.21 | 1.97 | 2.03 | 2.19 | 2.43 | 2.42 | 2.43 | 2.23 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $2,158,415K ÷ $984,835K
= 2.19
Olympic Steel Inc.'s total asset turnover has been fluctuating over the past eight quarters. The company's total asset turnover ratio ranged from a low of 2.19 in Q4 2023 to a high of 2.87 in Q4 2022. Generally, a higher total asset turnover ratio is favorable as it indicates that the company is generating more sales revenue per dollar of assets.
The decreasing trend in total asset turnover from 2.87 in Q4 2022 to 2.19 in Q4 2023 suggests that Olympic Steel Inc. may have experienced challenges in efficiently utilizing its assets to generate revenue. This could be due to various factors such as an increase in asset base without corresponding revenue growth or operational inefficiencies.
It is important for the company to closely monitor and evaluate the factors influencing its total asset turnover to ensure optimal utilization of assets and improve overall financial performance. Additionally, comparing the total asset turnover ratio with industry benchmarks and historical data can provide valuable insights into the company's operational efficiency and competitiveness.
Peer comparison
Dec 31, 2023