Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
United States Steel Corp., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | United States Steel Corp. inventory turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | United States Steel Corp. receivables turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | United States Steel Corp. payables turnover ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | United States Steel Corp. working capital turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | United States Steel Corp. number of days of inventory outstanding deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | United States Steel Corp. number of days of receivables outstanding deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | United States Steel Corp. operating cycle deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | United States Steel Corp. number of days of payables outstanding increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | United States Steel Corp. cash conversion cycle deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Inventory Turnover
United States Steel Corp., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of sales | 16,777) | 14,533) | 9,558) | 12,082) | 12,305) | |
| Inventories | 2,359) | 2,210) | 1,402) | 1,785) | 2,092) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 7.11 | 6.58 | 6.82 | 6.77 | 5.88 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 2.91 | 3.12 | 2.99 | 3.22 | — | |
| Inventory Turnover, Industry | ||||||
| Materials | 4.84 | 5.27 | 4.94 | 5.17 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 16,777 ÷ 2,359 = 7.11
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | United States Steel Corp. inventory turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Receivables Turnover
United States Steel Corp., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 21,065) | 20,275) | 9,741) | 12,937) | 14,178) | |
| Receivables, less allowance | 1,635) | 2,089) | 994) | 1,177) | 1,659) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 12.88 | 9.71 | 9.80 | 10.99 | 8.55 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 17.05 | 19.56 | 15.92 | 19.44 | — | |
| Receivables Turnover, Industry | ||||||
| Materials | 9.26 | 9.18 | 8.38 | 8.46 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Receivables turnover = Net sales ÷ Receivables, less allowance
= 21,065 ÷ 1,635 = 12.88
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | United States Steel Corp. receivables turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Payables Turnover
United States Steel Corp., payables turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of sales | 16,777) | 14,533) | 9,558) | 12,082) | 12,305) | |
| Accounts payable and other accrued liabilities | 3,016) | 2,908) | 1,884) | 2,054) | 2,535) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 5.56 | 5.00 | 5.07 | 5.88 | 4.85 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 5.59 | 6.89 | 7.91 | 7.92 | — | |
| Payables Turnover, Industry | ||||||
| Materials | 5.82 | 5.41 | 5.49 | 5.83 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Payables turnover = Cost of sales ÷ Accounts payable and other accrued liabilities
= 16,777 ÷ 3,016 = 5.56
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | United States Steel Corp. payables turnover ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
Working Capital Turnover
United States Steel Corp., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 7,866) | 7,152) | 4,432) | 3,813) | 4,830) | |
| Less: Current liabilities | 3,959) | 3,852) | 2,656) | 2,625) | 3,197) | |
| Working capital | 3,907) | 3,300) | 1,776) | 1,188) | 1,633) | |
| Net sales | 21,065) | 20,275) | 9,741) | 12,937) | 14,178) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 5.39 | 6.14 | 5.48 | 10.89 | 8.68 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 2.46 | 2.56 | 2.41 | 3.06 | — | |
| Working Capital Turnover, Industry | ||||||
| Materials | 13.54 | 15.37 | 19.50 | 20.12 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Working capital turnover = Net sales ÷ Working capital
= 21,065 ÷ 3,907 = 5.39
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | United States Steel Corp. working capital turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Average Inventory Processing Period
United States Steel Corp., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 7.11 | 6.58 | 6.82 | 6.77 | 5.88 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 51 | 56 | 54 | 54 | 62 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 125 | 117 | 122 | 113 | — | |
| Average Inventory Processing Period, Industry | ||||||
| Materials | 75 | 69 | 74 | 71 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 7.11 = 51
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | United States Steel Corp. number of days of inventory outstanding deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Average Receivable Collection Period
United States Steel Corp., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 12.88 | 9.71 | 9.80 | 10.99 | 8.55 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 28 | 38 | 37 | 33 | 43 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 21 | 19 | 23 | 19 | — | |
| Average Receivable Collection Period, Industry | ||||||
| Materials | 39 | 40 | 44 | 43 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 12.88 = 28
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | United States Steel Corp. number of days of receivables outstanding deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Operating Cycle
United States Steel Corp., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 51 | 56 | 54 | 54 | 62 | |
| Average receivable collection period | 28 | 38 | 37 | 33 | 43 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 79 | 94 | 91 | 87 | 105 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 146 | 136 | 145 | 132 | — | |
| Operating Cycle, Industry | ||||||
| Materials | 114 | 109 | 118 | 114 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 51 + 28 = 79
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | United States Steel Corp. operating cycle deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Average Payables Payment Period
United States Steel Corp., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 5.56 | 5.00 | 5.07 | 5.88 | 4.85 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 66 | 73 | 72 | 62 | 75 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 65 | 53 | 46 | 46 | — | |
| Average Payables Payment Period, Industry | ||||||
| Materials | 63 | 67 | 66 | 63 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.56 = 66
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | United States Steel Corp. number of days of payables outstanding increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |
Cash Conversion Cycle
United States Steel Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 51 | 56 | 54 | 54 | 62 | |
| Average receivable collection period | 28 | 38 | 37 | 33 | 43 | |
| Average payables payment period | 66 | 73 | 72 | 62 | 75 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 13 | 21 | 19 | 25 | 30 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 81 | 83 | 99 | 86 | — | |
| Cash Conversion Cycle, Industry | ||||||
| Materials | 51 | 42 | 52 | 51 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 51 + 28 – 66 = 13
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | United States Steel Corp. cash conversion cycle deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |