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POSCO (PKX) | Short-term (Operating) Activity Analysis

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Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.


Ratios (Summary)

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POSCO, short-term (operating) activity ratios

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    Dec 31, 2011 Dec 31, 2010
  Turnover Ratios
chart Inventory turnover
chart Receivables turnover
chart Payables turnover
chart Working capital turnover
  Average No. of Days
chart Average inventory processing period
chart Add: Average receivable collection period
chart Operating cycle
chart Less: Average payables payment period
chart Cash conversion cycle

Source: Based on data from POSCO Annual Reports

Inventory Turnover

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    Dec 31, 2011 Dec 31, 2010
  Selected Financial Data (USD $ in millions, translated from KRW ₩)
chart Revenue
chart Inventories
  Inventory Turnover, Comparison to Industry
chart POSCO1
  Industry, Basic Materials

Source: Based on data from POSCO Annual Reports

2011 Calculations

1 Inventory turnover = Revenue ÷ Inventories
= ÷ =

Receivables Turnover

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    Dec 31, 2011 Dec 31, 2010
  Selected Financial Data (USD $ in millions, translated from KRW ₩)
chart Revenue
chart Trade accounts and notes receivable, net
  Receivables Turnover, Comparison to Industry
chart POSCO1
  Industry, Basic Materials

Source: Based on data from POSCO Annual Reports

2011 Calculations

1 Receivables turnover = Revenue ÷ Trade accounts and notes receivable, net
= ÷ =

Payables Turnover

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    Dec 31, 2011 Dec 31, 2010
  Selected Financial Data (USD $ in millions, translated from KRW ₩)
chart Revenue
chart Trade accounts and notes payable
  Payables Turnover, Comparison to Industry
chart POSCO1
  Industry, Basic Materials

Source: Based on data from POSCO Annual Reports

2011 Calculations

1 Payables turnover = Revenue ÷ Trade accounts and notes payable
= ÷ =

Working Capital Turnover

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    Dec 31, 2011 Dec 31, 2010
  Selected Financial Data (USD $ in millions, translated from KRW ₩)
chart Revenue
chart Working capital
  Working Capital Turnover, Comparison to Industry
chart POSCO1
  Industry, Basic Materials

Source: Based on data from POSCO Annual Reports

2011 Calculations

1 Working capital turnover = Revenue ÷ Working capital
= ÷ =

Average Inventory Processing Period

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    Dec 31, 2011 Dec 31, 2010
  Selected Financial Data
chart Inventory turnover
  Average Inventory Processing Period (no. of days), Comparison to Industry
chart POSCO1
  Industry, Basic Materials

Source: Based on data from POSCO Annual Reports

2011 Calculations

1 Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =

Average Receivable Collection Period

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    Dec 31, 2011 Dec 31, 2010
  Selected Financial Data
chart Receivables turnover
  Average Receivable Collection Period (no. of days), Comparison to Industry
chart POSCO1
  Industry, Basic Materials

Source: Based on data from POSCO Annual Reports

2011 Calculations

1 Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =

Operating Cycle

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No. of days

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    Dec 31, 2011 Dec 31, 2010
  Selected Financial Data
chart Average inventory processing period
chart Average receivable collection period
  Operating Cycle, Comparison to Industry
chart POSCO1
  Industry, Basic Materials

Source: Based on data from POSCO Annual Reports

2011 Calculations

1 Operating cycle = Average inventory processing period + Average receivable collection period
= + =

Average Payables Payment Period

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    Dec 31, 2011 Dec 31, 2010
  Selected Financial Data
chart Payables turnover
  Average Payables Payment Period (no. of days), Comparison to Industry
chart POSCO1
  Industry, Basic Materials

Source: Based on data from POSCO Annual Reports

2011 Calculations

1 Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =

Cash Conversion Cycle

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No. of days

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    Dec 31, 2011 Dec 31, 2010
  Selected Financial Data
chart Average inventory processing period
chart Average receivable collection period
chart Average payables payment period
  Cash Conversion Cycle, Comparison to Industry
chart POSCO1
  Industry, Basic Materials

Source: Based on data from POSCO Annual Reports

2011 Calculations

1 Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + =

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