Century Aluminum Company (CENX)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,676,000 | 3,086,000 | 3,954,300 | 5,317,700 | 5,722,400 | 6,099,900 | 5,800,200 | 4,820,100 | 4,157,500 | 3,208,300 | 2,521,800 | 1,964,500 | 1,605,100 | 1,651,500 | 1,696,600 | 1,767,800 | 1,836,600 | 1,888,000 | 1,931,800 | 1,928,700 |
| Property, plant and equipment | US$ in thousands | 1,004,200 | 994,800 | 860,800 | 743,200 | 744,400 | 740,900 | 738,400 | 893,300 | 892,500 | 872,800 | 868,800 | 867,400 | 880,400 | 899,700 | 919,000 | 935,400 | 949,200 | 950,100 | 951,500 | 960,100 |
| Fixed asset turnover | 2.66 | 3.10 | 4.59 | 7.16 | 7.69 | 8.23 | 7.86 | 5.40 | 4.66 | 3.68 | 2.90 | 2.26 | 1.82 | 1.84 | 1.85 | 1.89 | 1.93 | 1.99 | 2.03 | 2.01 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,676,000K ÷ $1,004,200K
= 2.66
Century Aluminum Company's fixed asset turnover ratio portrays the effectiveness of the company in generating sales revenue from its fixed assets investment. The ratio has displayed fluctuations over the examined periods.
The ratio peaked at 8.23 in Q3 2022, indicating that the company generated $8.23 in sales for every dollar invested in fixed assets during that quarter. This suggests efficient utilization of fixed assets to generate revenue. However, in recent quarters, the ratio has declined but remains relatively strong, standing at 2.66 in Q4 2023.
The gradual decline in the fixed asset turnover ratio may imply challenges in maximizing sales from fixed assets or a significant increase in fixed asset base without a proportionate rise in sales revenue. This could potentially indicate inefficiencies in asset utilization or operational performance.
Overall, while the fixed asset turnover ratio has fluctuated, it still indicates that Century Aluminum is generating a decent level of sales from its fixed assets, although it may need to monitor asset utilization efficiency to ensure optimal revenue generation.
Peer comparison
Dec 31, 2023