Olympic Steel Inc (ZEUS)
Working capital 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 current assets | US$ in thousands | 603,169 | 641,900 | 660,616 | 669,497 | 658,106 | 805,126 | 854,896 | 814,594 | 789,400 | 748,817 | 659,659 | 508,118 | 402,204 | 394,716 | 415,210 | 444,984 | 419,842 | 465,945 | 489,577 | 562,323 |
| Total current liabilities | US$ in thousands | 180,237 | 186,372 | 178,792 | 188,005 | 164,702 | 230,717 | 244,599 | 219,983 | 224,336 | 229,434 | 216,370 | 173,412 | 126,725 | 96,504 | 94,445 | 110,243 | 101,087 | 117,628 | 103,121 | 129,705 |
| Working capital turnover | 5.10 | 4.80 | 4.77 | 5.06 | 5.19 | 4.64 | 4.43 | 4.28 | 4.09 | 3.89 | 3.72 | 4.01 | 4.48 | 4.10 | 4.07 | 4.44 | 4.95 | 4.85 | 4.56 | 4.13 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,158,415K ÷ ($603,169K – $180,237K)
= 5.10
Working capital turnover measures the efficiency of a company in utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively using its current assets to drive sales.
For Olympic Steel Inc., the working capital turnover ratio has fluctuated over the past eight quarters, ranging from 4.28 to 5.19. The ratio peaked in Q4 2022 at 5.19 and reached its lowest point in Q2 2022 at 4.28.
Overall, Olympic Steel Inc. has shown a relatively stable performance in terms of working capital turnover, with the average ratio over the eight quarters being around 4.75. This indicates that, on average, the company is able to generate approximately $4.75 in sales for every $1 of working capital invested.
Investors and analysts should continue to monitor Olympic Steel Inc.'s working capital turnover ratio to assess its ability to efficiently manage its working capital and generate sales in the future.
Peer comparison
Dec 31, 2023