Olympic Steel Inc (ZEUS)
Working capital 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 |
| Total current assets | US$ in thousands | 603,169 | 658,106 | 789,400 | 402,204 | 419,842 |
| Total current liabilities | US$ in thousands | 180,237 | 164,702 | 224,336 | 126,725 | 101,087 |
| Working capital turnover | 5.10 | 5.19 | 4.10 | 4.47 | 4.95 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,158,010K ÷ ($603,169K – $180,237K)
= 5.10
The working capital turnover ratio for Olympic Steel Inc. has fluctuated over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue.
In 2023, the working capital turnover ratio decreased slightly to 5.10 from 5.19 in 2022. This might suggest a slight decrease in efficiency in converting working capital into revenue compared to the previous year.
In 2021, the ratio improved to 4.09 from 4.48 in 2020, indicating a better utilization of working capital to generate revenue.
Overall, the company has shown varying levels of efficiency in managing its working capital over the past five years, with fluctuations in the ratio. Further analysis of the company's financial performance and working capital management strategies would be necessary to understand the reasons behind these fluctuations.
Peer comparison
Dec 31, 2023