Chemours Co (CC)
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 | 4.40 | 4.73 | 4.30 | 4.18 | 4.53 | 4.84 | 5.17 | 5.34 | 5.53 | 5.87 | 5.41 | 4.81 | 4.90 | 4.56 | 4.35 | 4.38 | 4.62 | 3.97 | 3.96 | 4.22 |
| Receivables turnover | 9.64 | 6.88 | 6.89 | 7.66 | 10.61 | 7.01 | 6.33 | 6.39 | 8.53 | 7.07 | 6.78 | 6.74 | 9.27 | 8.43 | 9.22 | 7.78 | 7.97 | 6.81 | 6.73 | 7.42 |
| Payables turnover | 5.13 | 7.02 | 6.27 | 5.44 | 5.16 | 5.03 | 5.05 | 5.33 | 5.23 | 5.50 | 5.33 | 4.87 | 5.45 | 6.46 | 7.18 | 5.80 | 5.41 | 5.12 | 5.18 | 4.93 |
| Working capital turnover | 4.36 | 7.68 | 5.18 | 4.40 | 5.02 | 4.32 | 3.92 | 4.00 | 4.13 | 3.69 | 3.96 | 3.79 | 3.98 | 3.72 | 3.19 | 4.24 | 4.35 | 4.79 | 4.27 | 4.93 |
Analyzing Chemours Co's activity ratios, we observe the following trends:
1. Inventory Turnover: The company's inventory turnover ratio has been fluctuating over the periods, ranging from a low of 3.96 to a high of 5.87. Generally, a higher inventory turnover indicates efficient management of inventory levels. Chemours Co's inventory turnover has remained relatively stable around 4 to 5 times per year.
2. Receivables Turnover: The turnover ratio for receivables also shows variability over time, with values ranging from 6.33 to 10.61. A higher receivables turnover ratio suggests that the company is collecting outstanding payments from customers more quickly. Chemours Co has experienced fluctuations in its receivables turnover, potentially indicating changes in its credit policies or the efficiency of its collection processes.
3. Payables Turnover: The payables turnover ratio for Chemours Co has varied from 4.87 to 7.18, indicating the speed at which the company is paying its suppliers. A higher payables turnover ratio suggests that the company is taking longer to pay its suppliers, which may indicate favorable credit terms or cash flow management.
4. Working Capital Turnover: The working capital turnover ratio measures how efficiently the company is using its working capital to generate sales. Chemours Co's working capital turnover has ranged from 3.19 to 7.68, highlighting fluctuations in the company's ability to generate revenue from its current assets and liabilities. A higher working capital turnover ratio suggests more effective utilization of resources.
Overall, the analysis of Chemours Co's activity ratios indicates variability in operational efficiency and working capital management over the periods examined. Monitoring these ratios can provide valuable insights into the company's financial performance and effectiveness in managing its resources.
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 | 82.97 | 77.23 | 84.81 | 87.23 | 80.51 | 75.42 | 70.58 | 68.35 | 65.95 | 62.16 | 67.47 | 75.82 | 74.46 | 80.08 | 83.85 | 83.39 | 78.94 | 92.04 | 92.21 | 86.59 |
| Days of sales outstanding (DSO) | days | 37.86 | 53.07 | 52.99 | 47.66 | 34.42 | 52.05 | 57.69 | 57.14 | 42.79 | 51.62 | 53.80 | 54.15 | 39.37 | 43.28 | 39.57 | 46.93 | 45.80 | 53.58 | 54.27 | 49.18 |
| Number of days of payables | days | 71.12 | 52.02 | 58.18 | 67.04 | 70.71 | 72.51 | 72.32 | 68.46 | 69.74 | 66.38 | 68.43 | 74.90 | 66.93 | 56.53 | 50.83 | 62.95 | 67.53 | 71.34 | 70.52 | 74.08 |
Chemours Co's activity ratios provide insight into its efficiency in managing its inventory, receivables, and payables.
1. Days of Inventory on Hand (DOH): Chemours Co's average days of inventory on hand have shown some fluctuation over the periods analyzed, ranging from 62.16 days to 87.23 days. A higher DOH value indicates longer inventory turnover, which may signal slower sales or excess inventory. The company should aim to optimize inventory management to avoid overstocking or obsolescence.
2. Days of Sales Outstanding (DSO): The DSO ratio for Chemours Co has varied between 34.42 days and 57.69 days, reflecting the average number of days it takes to collect revenue from credit sales. A lower DSO is generally preferable as it signifies faster cash conversion and efficient collection practices. Chemours Co needs to monitor and potentially improve its credit and collection policies to reduce DSO.
3. Number of Days of Payables: In terms of payables, Chemours Co's average number of days of payables has ranged from 50.83 days to 74.90 days. A higher number of days of payables indicates a longer time taken to pay off trade payables, which may suggest favorable payment terms with suppliers or potential liquidity challenges. The company should strike a balance to optimize cash flow and maintain healthy vendor relationships.
Overall, Chemours Co should focus on optimizing its inventory levels, accelerating receivables collection, and managing payables efficiently to enhance its working capital management 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 | 1.83 | 1.87 | 1.92 | 2.02 | 2.09 | 2.24 | 2.17 | 2.07 | 1.95 | 1.88 | 1.58 | 1.42 | 1.36 | 1.41 | 1.46 | 1.54 | 1.51 | 1.61 | 1.69 | 1.86 |
| Total asset turnover | 0.71 | 0.73 | 0.80 | 0.84 | 0.87 | 0.89 | 0.87 | 0.86 | 0.81 | 0.78 | 0.73 | 0.68 | 0.67 | 0.69 | 0.71 | 0.76 | 0.74 | 0.76 | 0.80 | 0.86 |
The fixed asset turnover ratio for Chemours Co has been fluctuating over the past few quarters, ranging from a low of 1.36 to a high of 2.24. This ratio measures how efficiently the company is generating revenue from its fixed assets, such as property, plant, and equipment. A higher fixed asset turnover indicates better utilization of these assets to generate sales.
On the other hand, the total asset turnover ratio, which reflects the company's ability to generate sales from all its assets, has also shown variability, ranging from 0.67 to 0.89. A lower total asset turnover may suggest inefficiencies in utilizing all assets to generate revenue.
Overall, the trend in both ratios for Chemours Co indicates some fluctuations in asset utilization efficiency. It would be important to further analyze the reasons behind these variations to assess the company's operational performance and asset management strategies.