Century Aluminum Company (CENX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,123,600 | 5,722,400 | 4,157,500 | 1,605,100 | 1,836,600 |
| Property, plant and equipment | US$ in thousands | 1,004,200 | 744,400 | 892,500 | 880,400 | 949,200 |
| Fixed asset turnover | 2.11 | 7.69 | 4.66 | 1.82 | 1.93 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,123,600K ÷ $1,004,200K
= 2.11
Century Aluminum Company's fixed asset turnover ratio has exhibited fluctuating trends over the past five years. The ratio was 2.11 in 2023, indicating that the company generated $2.11 in revenue for every dollar invested in fixed assets during the year. This represents a decrease from the exceptionally high ratio of 7.69 in 2022, suggesting a substantial decline in revenue generation efficiency from fixed assets.
The 2023 ratio of 2.11, while lower than the previous year, remains relatively strong compared to 2021 and 2020, which had ratios of 4.66 and 1.82 respectively. This suggests that the company improved its utilization of fixed assets compared to the earlier years but still lags behind the exceptional performance seen in 2022.
The company's fixed asset turnover in 2019 was 1.93, indicating a moderate level of efficiency in generating revenue from fixed assets that year.
Overall, Century Aluminum Company's fixed asset turnover has shown variability over the past five years, with the most significant increase seen in 2022 and a notable decrease in 2023. Further analysis may be necessary to understand the factors driving these fluctuations and their implications for the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023