Alcoa Corp (AA)

Activity ratios

Short-term

Turnover 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
Inventory turnover 4.73 4.74 4.41 4.52 4.37 3.92 3.55 3.40 4.39 5.00 5.32 5.64 5.65 6.72 6.71 5.04 3.48 1.69 0.46 0.58
Receivables turnover 12.99 13.21 13.40 13.75 13.56 14.82 12.83 11.76 13.52 12.97 14.02 14.32 16.50 15.09 18.60 15.02 15.65 13.63 13.61 13.78
Payables turnover 5.95 7.06 7.09 7.27 6.03 5.92 5.18 5.15 5.13 5.74 5.91 6.22 5.63 6.91 7.60 5.97 3.86 1.97 0.53 0.69
Working capital turnover 7.63 6.04 5.21 5.42 5.49 5.37 4.99 5.79 6.63 8.24 6.82 5.80 5.22 5.27 10.05 9.00 10.68 9.46 9.38 9.90

The activity ratios of Alcoa Corp show varying trends across different quarters.

1. Inventory turnover: Alcoa Corp has maintained a relatively stable inventory turnover rate, ranging from 4.21 to 4.56 over the past eight quarters. This indicates that the company is managing its inventory efficiently, with a slight increase in turnover in the most recent quarter.

2. Receivables turnover: The receivables turnover ratio has shown some fluctuations, with the highest turnover recorded in Q3 2022 and the lowest in Q1 2022. Generally, Alcoa Corp has a high receivables turnover rate, which suggests that the company is able to collect its receivables quickly.

3. Payables turnover: Alcoa Corp has also experienced fluctuations in its payables turnover ratio, ranging from 5.50 to 7.01 over the analyzed period. A higher payables turnover ratio indicates that the company is taking longer to pay its suppliers, which can be advantageous in managing cash flow.

4. Working capital turnover: The working capital turnover ratio has shown an upward trend, with a peak in Q4 2023. This indicates that Alcoa Corp is generating revenue efficiently in relation to its investment in working capital.

Overall, Alcoa Corp's activity ratios demonstrate effective management of inventory, receivables, payables, and working capital, providing insights into the company's operational efficiency and cash flow management.

Average number of days

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 77.21 76.94 82.83 80.73 83.61 93.02 102.75 107.51 83.11 72.99 68.64 64.72 64.57 54.33 54.40 72.36 104.80 215.50 796.24 633.21
Days of sales outstanding (DSO) days 28.10 27.62 27.24 26.54 26.92 24.63 28.45 31.03 26.99 28.14 26.03 25.49 22.12 24.19 19.63 24.30 23.33 26.77 26.81 26.50
Number of days of payables days 61.33 51.72 51.46 50.19 60.53 61.63 70.43 70.88 71.13 63.56 61.77 58.64 64.80 52.85 48.04 61.18 94.60 185.31 686.29 529.02

Days of inventory on hand (DOH) measures how many days it takes for the company to sell its inventory. A lower DOH is generally preferred as it indicates efficient inventory management. Alcoa Corp's DOH has fluctuated over the quarters, ranging from 80.06 to 100.72 days. In the most recent quarter, DOH was 80.27 days, indicating that Alcoa is managing its inventory efficiently.

Days of sales outstanding (DSO) reflects how long it takes for the company to collect payment from its customers after making a sale. A lower DSO indicates better accounts receivable management. Alcoa Corp's DSO has also varied over the quarters, with values ranging from 24.13 to 30.48 days. In Q4 2023, the DSO was 27.95 days, suggesting that the company is collecting payments within a reasonable time frame.

Number of days of payables measures how long it takes for the company to pay its suppliers. A longer number of days of payables indicates that the company is taking longer to pay its obligations. Alcoa Corp's number of days of payables has fluctuated between 53.44 and 66.40 days. In Q4 2023, the number of days of payables was 63.75 days, showing that Alcoa Corp is taking a moderate amount of time to pay its suppliers.

Overall, Alcoa Corp's activity ratios show that the company is managing its inventory efficiently, collecting payments within a reasonable time frame, and paying its suppliers in a timely manner. It is important for the company to continue monitoring and improving these ratios to enhance its operational efficiency and overall financial performance.

Long-term

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
Fixed asset turnover 1.55 1.61 1.68 1.82 1.90 2.06 2.03 1.81 1.80 1.67 1.50 1.40 1.28 1.27 1.29 1.40 1.30 1.42 1.46 1.56
Total asset turnover 0.74 0.76 0.76 0.82 0.84 0.86 0.83 0.77 0.80 0.79 0.72 0.65 0.62 0.65 0.71 0.73 0.71 0.77 0.79 0.81

The fixed asset turnover ratio measures how efficiently a company generates sales from its fixed assets. In the case of Alcoa Corp, the fixed asset turnover ratio has been declining over the past eight quarters, dropping from 1.92 in Q4 2022 to 1.56 in Q4 2023. This trend suggests that Alcoa Corp is generating fewer sales relative to its investment in fixed assets. The decreasing trend could be a cause for concern as it may indicate underutilization or inefficiency in the company's fixed asset base.

On the other hand, the total asset turnover ratio reflects how effectively a company utilizes all of its assets to generate revenue. Alcoa Corp's total asset turnover ratio has also been on a downward trend over the same period, decreasing from 0.84 in Q4 2022 to 0.75 in Q4 2023. This decline indicates that Alcoa Corp is generating less revenue relative to its total asset base, which could point to inefficiencies in the company's overall asset utilization.

Overall, the decreasing trends in both the fixed asset turnover and total asset turnover ratios for Alcoa Corp signal potential challenges in asset utilization and efficiency. Further analysis and investigation into the factors driving these declines would be necessary to identify and address any underlying issues impacting the company's long-term activity ratios.