Century Aluminum Company (CENX)

The Days Sales Outstanding (DSO) ratio measures how efficiently Century Aluminum Company is managing its accounts receivable. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally favorable as it reflects better liquidity and cash flow management.

Analyzing the DSO trend of Century Aluminum Company from 2020 to 2024, we observe a significant improvement in the collection of accounts receivable over the period. In December 2020, the DSO was 13.94 days, which decreased to 7.80 days in December 2021, signifying a more efficient collection process.

Further, by December 2022, the DSO dropped even lower to 4.57 days, showcasing continued efficiency in collecting receivables. However, there was a notable increase in the DSO to 15.45 days by December 2023, suggesting a potential delay in collecting accounts receivable during that period.

In the most recent data available, as of December 31, 2024, the DSO stands at 14.62 days. While this represents a slight increase from the previous year, it is essential for Century Aluminum Company to monitor this metric closely to ensure timely collection of receivables and maintain optimal cash flow levels.

Overall, the decreasing trend in DSO from 2020 to 2022 reflects improved efficiency in collecting accounts receivable, although the fluctuations in 2023 and 2024 emphasize the importance of actively managing the company's accounts receivable and maintaining a balance between prompt collections and customer relationships.

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Dec 31, 2024