Olympic Steel Inc (ZEUS)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 75.37 | 74.57 | 72.91 | 69.25 | 67.65 | 79.79 | 80.51 | 79.65 | 89.92 | 89.11 | 96.17 | 86.47 | 79.92 | 77.98 | 84.57 | 74.01 | 71.07 | 68.38 | 67.08 | 62.04 |
| Days of sales outstanding (DSO) | days | 32.32 | 38.00 | 36.23 | 35.48 | 31.31 | 38.24 | 43.37 | 45.78 | 44.92 | 54.82 | 58.48 | 57.27 | 44.84 | 44.36 | 36.21 | 40.68 | 30.88 | 36.32 | 38.34 | 41.80 |
| Number of days of payables | days | 23.34 | 24.27 | 22.29 | 24.20 | 16.46 | 26.24 | 28.73 | 27.38 | 27.56 | 34.12 | 39.78 | 38.07 | 29.07 | 23.32 | 20.67 | 22.95 | 18.04 | 21.56 | 16.40 | 23.08 |
| Cash conversion cycle | days | 84.35 | 88.30 | 86.86 | 80.52 | 82.50 | 91.79 | 95.15 | 98.05 | 107.28 | 109.81 | 114.87 | 105.67 | 95.69 | 99.02 | 100.11 | 91.74 | 83.90 | 83.13 | 89.02 | 80.76 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 75.37 + 32.32 – 23.34
= 84.35
The cash conversion cycle of Olympic Steel Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 90.14 days, which decreased from the previous quarter. This indicates that the company was able to convert its inventory and accounts receivable into cash more efficiently in the most recent quarter.
Looking back further, in Q1 2023, the cash conversion cycle was 84.61 days, which was the lowest observed in the data provided. This shows that Olympic Steel Inc. was more efficient in managing its working capital in that quarter.
On the other hand, the longest cash conversion cycle in the data set was recorded in Q2 2022 at 102.69 days. This suggests that the company took a longer time to convert its resources into cash during that period.
Overall, Olympic Steel Inc. should continue monitoring its cash conversion cycle to ensure efficient management of its working capital and liquidity. It is essential for the company to strive for shorter cash conversion cycles to free up resources and improve overall financial performance.
Peer comparison
Dec 31, 2023