Century Aluminum Company (CENX)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 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 | 17.95 | 16.99 | 16.82 | |
| DSO | days | 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 | 20.34 | 21.48 | 21.71 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 29.77
= 12.26
Century Aluminum Company's Days of Sales Outstanding (DSO) provides insight into the average number of days it takes for the company to collect revenue after making a sale. A lower DSO indicates faster collection of receivables, which is generally preferable as it indicates efficient cash flow management.
Based on the data provided, Century Aluminum Company's DSO has shown fluctuations over the past few quarters. In the most recent quarter, ending December 31, 2023, the DSO stood at 12.26 days, which is an increase compared to the prior quarter. However, it is lower compared to the same quarter in the previous year.
In general, the trend in DSO has been improving over the past few quarters, indicating that Century Aluminum Company has been managing its accounts receivable more efficiently. The significant decrease in DSO from the beginning of 2021 to the end of 2022 is a positive sign, as it shows the company's efforts in collecting cash from customers more quickly.
It is essential for Century Aluminum Company to continue monitoring its DSO and aim to keep it at a reasonable level to ensure a healthy cash flow position. By effectively managing its accounts receivable, the company can enhance its liquidity and financial stability.
Overall, while there have been fluctuations in DSO, the general trend indicates improvement in Century Aluminum Company's ability to collect cash from customers in a timely manner, which is a positive indicator for the company's financial health.
Peer comparison
Dec 31, 2023