Century Aluminum Company (CENX)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,094,200 | 2,139,800 | 2,929,400 | 2,148,000 | 1,641,600 |
| Inventory | US$ in thousands | 539,000 | 477,000 | 398,800 | 425,600 | 291,100 |
| Inventory turnover | 3.89 | 4.49 | 7.35 | 5.05 | 5.64 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,094,200K ÷ $539,000K
= 3.89
Century Aluminum Company's inventory turnover has experienced fluctuations over the past five years.
As of December 31, 2020, the inventory turnover was 5.64, indicating that the company converted its inventory into sales approximately 5.64 times during the year. The ratio decreased slightly to 5.05 by December 31, 2021, suggesting a slower rate of inventory turnover.
However, there was a significant improvement in the inventory turnover by December 31, 2022, reaching 7.35. This implies that Century Aluminum was more efficient in managing its inventory and converting it into sales during that year.
Subsequently, the inventory turnover dropped to 4.49 by December 31, 2023, indicating a potential issue with inventory management or sales performance.
By December 31, 2024, the inventory turnover further declined to 3.89, signaling a continued challenge in efficiently managing and selling inventory.
Overall, the trend in Century Aluminum Company's inventory turnover suggests some variability and potential areas for improvement in inventory management practices and sales performance.
Peer comparison
Dec 31, 2024