Olympic Steel Inc (ZEUS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.35 | 3.44 | 3.69 | 3.56 | 4.00 | 3.49 | 3.50 | 3.70 | 3.52 | 3.26 | 3.05 | 2.93 | 3.17 | 4.09 | 4.40 | 4.04 | 4.15 | 3.96 | 4.75 | 4.34 |
| Quick ratio | 1.13 | 1.30 | 1.37 | 1.36 | 1.41 | 1.26 | 1.35 | 1.49 | 1.31 | 1.39 | 1.28 | 1.26 | 1.24 | 1.59 | 1.45 | 1.55 | 1.38 | 1.50 | 1.86 | 1.62 |
| Cash ratio | 0.07 | 0.08 | 0.09 | 0.11 | 0.07 | 0.04 | 0.03 | 0.04 | 0.04 | 0.07 | 0.05 | 0.05 | 0.04 | 0.05 | 0.08 | 0.05 | 0.06 | 0.07 | 0.06 | 0.04 |
The liquidity ratios of Olympic Steel Inc. show a consistently strong financial position over the recent quarters.
The current ratio, which measures the company's ability to pay off its short-term liabilities with its current assets, has been stable around 3.5-4.0 in the past year. A current ratio above 2.0 is generally considered healthy, indicating that Olympic Steel has a comfortable cushion of current assets to cover its current liabilities.
The quick ratio, also known as the acid-test ratio, provides a more stringent assessment of liquidity by excluding inventory from current assets. Olympic Steel's quick ratio has ranged from 1.20 to 1.54, showing that the company has an adequate level of highly liquid assets to cover its short-term obligations without relying on selling inventory.
The cash ratio, which measures the ability to cover current liabilities with cash and cash equivalents, has shown a slight increase over the quarters, ranging from 0.08 to 0.15. While the cash ratio remains relatively low compared to the other liquidity ratios, it indicates that Olympic Steel has maintained a sufficient level of cash reserves to meet its immediate payment obligations.
Overall, Olympic Steel Inc. demonstrates strong liquidity positions based on these ratios, suggesting that the company has a healthy cash flow and is well-positioned to meet its short-term financial obligations.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Olympic Steel Inc. has displayed fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle stands at 90.14 days, showing a slight improvement compared to the previous quarter's 93.52 days. However, this represents a deviation from the trend observed over the past year, where Q1 2023 recorded the lowest cycle at 84.61 days.
Overall, the trend in the cash conversion cycle appears to have been relatively stable, with some periods showing a slight increase and others a marginal decline. The company should aim to maintain this cycle at an optimal level to efficiently manage its cash flow from operations, accounts receivable, and accounts payable. It is essential for Olympic Steel Inc. to monitor and analyze these fluctuations to ensure healthy liquidity management and effective working capital utilization.