Chemours Co (CC)

Short-term

Turnover ratios

The activity ratios of Chemours Co provide insights into how efficiently the company manages its assets and liabilities to generate revenue.

1. Inventory turnover:
- The inventory turnover ratio indicates how effectively Chemours Co is able to sell its inventory during a period.
- Over the years, the company's inventory turnover has fluctuated but generally has remained above 3, which suggests that the company is efficiently managing its inventory levels.
- An increase in inventory turnover from 2020 to 2021 and then a slight decrease in the following years may imply improvements in inventory management followed by a potential increase in inventory holding periods.

2. Receivables turnover:
- The absence of data for receivables turnover indicates that there is no information available to assess how quickly Chemours Co collects its receivables from customers.
- It is essential for the company to track and manage its receivables turnover to ensure timely collection and efficient cash flow management.

3. Payables turnover:
- Similar to receivables turnover, the lack of data for payables turnover means there is no information on how quickly Chemours Co pays its suppliers.
- Efficient management of payables turnover can impact working capital requirements and relationships with suppliers.

4. Working capital turnover:
- The working capital turnover ratio reflects how efficiently Chemours Co utilizes its working capital to generate revenue.
- The trend shows variations in working capital turnover over the years, with some fluctuations.
- Generally, a higher working capital turnover ratio indicates effective utilization of working capital to support revenue generation.

In conclusion, while the inventory turnover and working capital turnover ratios provide some insights into Chemours Co's efficiency in managing assets and generating revenue, the absence of data for receivables turnover and payables turnover limits the overall assessment of the company's activity ratios. Monitoring all these ratios can help the company improve its operational efficiency and financial performance.

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Average number of days

Based on the provided data, we can analyze the activity ratios of Chemours Co as follows:

1. Days of Inventory on Hand (DOH):
- The average number of days it takes for Chemours Co to sell its inventory decreased from 87.84 days in 2020 to 80.81 days in 2021, implying more efficient inventory management.
- However, there was an increase in the DOH to 98.97 days in 2022, 104.53 days in 2023, and further to 116.02 days in 2024. This suggests a slowdown in inventory turnover and potentially excess inventory levels that may need to be addressed.

2. Days of Sales Outstanding (DSO):
- Unfortunately, no data is available for DSO, which is used to measure how quickly the company collects its accounts receivables. Without this information, it is challenging to assess the efficiency of Chemours Co in collecting payments from its customers.

3. Number of Days of Payables:
- Similar to DSO, there is no data available for the number of days of payables, which measures how quickly a company pays its suppliers. The absence of this information limits our ability to evaluate how effectively Chemours Co manages its payment obligations to suppliers.

In conclusion, the data provided indicates a somewhat mixed performance in inventory management for Chemours Co, with a noticeable increase in DOH over the years. However, the lack of information on DSO and payables hinders a comprehensive assessment of the company's overall activity ratios and liquidity management.

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Long-term

The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. Chemours Co's fixed asset turnover has shown a positive trend over the years, increasing from 1.43 in 2020 to 2.14 in 2022. This indicates that the company has been able to generate more revenue from its fixed assets over time.

On the other hand, the total asset turnover ratio reflects how well a company utilizes all its assets to generate revenue. Chemours Co's total asset turnover has also followed an increasing trend, rising from 0.70 in 2020 to 0.89 in 2022 before slightly decreasing in 2023 and 2024. This suggests that the company has been improving its overall efficiency in generating revenue from all its assets.

Overall, the increasing trend in both the fixed asset turnover and total asset turnover ratios for Chemours Co indicates improved efficiency in utilizing its assets to generate revenue, which can be a positive indication of the company's operational performance and asset management.