Century Aluminum Company (CENX)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,222,300 | 2,123,600 | 5,722,400 | 4,157,500 | 1,605,100 |
| Property, plant and equipment | US$ in thousands | 978,300 | 1,004,200 | 744,400 | 892,500 | 880,400 |
| Fixed asset turnover | 2.27 | 2.11 | 7.69 | 4.66 | 1.82 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,222,300K ÷ $978,300K
= 2.27
Based on the provided data, Century Aluminum Company's fixed asset turnover has shown significant fluctuations over the years. In 2020, the fixed asset turnover ratio stood at 1.82, indicating that the company generated $1.82 in sales revenue for every dollar invested in fixed assets.
The ratio surged to 4.66 in 2021, reflecting a substantial improvement in efficiency in utilizing fixed assets to generate sales. This indicates that the company generated $4.66 in sales per dollar of fixed assets.
In 2022, the fixed asset turnover ratio experienced another significant increase to 7.69, suggesting a continued improvement in the company's utilization of fixed assets to drive sales revenue. This sharp rise in the ratio indicates that Century Aluminum Company generated $7.69 in sales for every dollar invested in fixed assets.
However, the ratio dropped in 2023 to 2.11, showing a decline in the efficiency of converting fixed assets into sales revenue. This decrease may warrant further investigation into the company's operational performance and asset management.
By the end of 2024, the fixed asset turnover ratio slightly improved to 2.27, indicating a moderate increase in efficiency in utilizing fixed assets to generate sales revenue compared to the previous year.
Overall, the trend in Century Aluminum Company's fixed asset turnover indicates varying levels of efficiency in utilizing fixed assets to generate sales revenue over the years, with notable fluctuations in performance. Further analysis and comparison with industry peers may provide additional insights into the company's operational efficiency and asset management strategies.
Peer comparison
Dec 31, 2024