Century Aluminum Company (CENX)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.49 | 7.35 | 5.05 | 5.64 | 5.80 | |
| DOH | days | 81.37 | 49.69 | 72.32 | 64.72 | 62.90 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.49
= 81.37
The Days of Inventory on Hand (DOH) ratio for Century Aluminum Company has exhibited fluctuating trends over the past five years. In 2023, the company had an elevated DOH of 81.37 days compared to the previous year where it was 49.69 days, indicating that Century Aluminum had a higher level of inventory relative to its cost of goods sold. This increase could suggest slower inventory turnover, potentially leading to higher carrying costs and liquidity challenges.
In 2021, the DOH ratio stood at 72.32 days, representing another increase from the prior year. This might imply a buildup of inventory levels relative to sales, which could be attributed to various factors such as production inefficiencies, demand fluctuations, or supply chain disruptions.
However, in 2020 and 2019, the DOH ratio was relatively lower at 64.72 days and 62.90 days, respectively. This could indicate better inventory management practices during those periods, with the company holding lesser inventory in relation to its sales volume.
Overall, it is essential for Century Aluminum to effectively monitor and manage its inventory levels to optimize working capital utilization, reduce holding costs, and enhance overall operational efficiency.
Peer comparison
Dec 31, 2023