Century Aluminum Company (CENX)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 24.97 | 15.42 | 24.73 | 29.77 | 47.26 | 81.03 | 82.70 | 79.81 | 70.28 | 41.67 | 32.95 | 46.77 | 35.93 | 27.20 | 24.96 | 26.18 | 25.18 | 37.12 | 25.00 | 18.33 | |
| DSO | days | 14.62 | 23.67 | 14.76 | 12.26 | 7.72 | 4.50 | 4.41 | 4.57 | 5.19 | 8.76 | 11.08 | 7.80 | 10.16 | 13.42 | 14.62 | 13.94 | 14.50 | 9.83 | 14.60 | 19.91 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 24.97
= 14.62
The Days of Sales Outstanding (DSO) metric for Century Aluminum Company has exhibited fluctuations over the reported periods. The DSO represents the average number of days it takes for the company to collect payment after a sale is made.
From December 2019 to June 2020, Century Aluminum Company managed to reduce its DSO from 19.91 days to 9.83 days, indicating an improvement in its accounts receivable collection efficiency. However, there was a slight increase in DSO by September 2020 to 14.50 days before decreasing again to 13.94 days by December 2020.
Throughout 2021, the company maintained relatively stable DSO levels, with minor fluctuations around the mid-teens range. This indicates that Century Aluminum was efficient in collecting payments from its customers during that period.
By September 2021, the DSO dropped significantly to 10.16 days, suggesting an improvement in the company's accounts receivable management. The trend continued with a significant decrease in DSO to 7.80 days by the end of December 2021.
The first half of 2022 saw a further reduction in DSO to 4.57 days by the end of December 2022, indicating a more efficient collection of accounts receivable. The trend continued to March 2024, where there was a slight increase to 14.76 days, followed by a significant spike to 23.67 days by June 2024. This substantial increase may raise concerns about Century Aluminum's ability to collect payments efficiently and manage its accounts receivable effectively.
It is essential for the company to analyze the reasons behind the sudden increase in DSO during mid-2024 and take appropriate measures to maintain a healthy balance between sales and collections to ensure optimal cash flow and overall financial health.
Peer comparison
Dec 31, 2024