Chemours Co (CC)

Short-term

Turnover ratios

The analysis of activity ratios for Chemours Co provides insights into its operational efficiency and effectiveness in managing its assets and working capital.

1. Inventory Turnover: The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a specific period. Chemours Co's inventory turnover has fluctuated over the years, ranging from a low of 3.15 to a high of 4.73. A higher turnover ratio generally indicates efficient inventory management and sales.

2. Receivables Turnover: The receivables turnover ratio assesses how efficiently a company collects outstanding receivables from its customers. The data for Chemours Co indicates that receivables turnover information is not available or maintained for the periods provided, potentially suggesting that the company's credit and collection policies may not be actively tracked.

3. Payables Turnover: The payables turnover ratio examines how quickly a company pays its suppliers for goods and services. Similar to receivables turnover, data for payables turnover is not provided, implying that information related to the company's payment cycle to suppliers is not disclosed.

4. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. Chemours Co's working capital turnover has shown variability over time, with a range of 3.29 to 5.32. A higher working capital turnover ratio indicates better utilization of resources to generate revenue.

Overall, while the inventory turnover and working capital turnover ratios provide some insights into Chemours Co's operational efficiency, the lack of data for receivables turnover and payables turnover limits a comprehensive assessment of the company's overall activity ratios and working capital management.

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Average number of days

To analyze Chemours Co's activity ratios, we will focus on two key metrics:
1. Days of Inventory on Hand (DOH): This ratio indicates the number of days it takes for the company to sell its entire inventory. A lower DOH is typically favorable as it implies faster turnover and less tied-up capital in inventory. Chemours Co's DOH has fluctuated over the years, starting at 92.60 days on March 31, 2020, and peaking at 116.02 days on December 31, 2024. The upward trend since 2020 suggests a potential issue with managing inventory efficiently, as it is taking longer to sell inventory over time.
2. Days of Sales Outstanding (DSO): Unfortunately, there is no data available for DSO, which represents the average number of days it takes for a company to collect revenue after a sale. Without this information, it is challenging to assess Chemours Co's efficiency in collecting receivables.
3. Number of Days of Payables: Similarly, there is no data provided for this metric. Days of payables measures how long it takes a company to pay its suppliers. A longer period can indicate favorable credit terms but may also signal liquidity issues if payables are extended too far.

In conclusion, based on the available data, Chemours Co appears to be facing challenges in managing its inventory efficiently, as reflected in the increasing trend in the Days of Inventory on Hand ratio. However, without information on Days of Sales Outstanding and Number of Days of Payables, a comprehensive assessment of the company's activity ratios is not possible.

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Long-term

The Fixed Asset Turnover ratio for Chemours Co has shown an increasing trend over the period from March 2020 to June 2023, peaking at 2.14 in December 2022 before slightly declining to 1.97 by June 30, 2023. This indicates that the company is generating more revenue from its fixed assets. However, the ratio is not available for the periods beyond December 2023.

On the other hand, the Total Asset Turnover ratio has fluctuated over the same period, ranging from a low of 0.70 in December 2020 to a high of 0.91 in September 2022. The ratio has shown some variability but generally demonstrates the company's ability to generate sales from its total assets.

Overall, the increasing trend in Fixed Asset Turnover and the varying pattern in Total Asset Turnover suggest that Chemours Co has been efficiently utilizing its assets to generate revenue, although further analysis would be required to assess the long-term sustainability and effectiveness of the company's asset utilization strategies.