Century Aluminum Company (CENX)
Inventory turnover
| Dec 31, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,094,200 | 2,090,300 | 2,109,200 | 2,139,800 | 2,219,300 | 2,340,700 | 2,775,000 | 2,929,400 | 2,977,300 | 2,829,400 | 2,339,300 | 2,148,000 | 1,927,900 | 1,806,900 | 1,706,000 | 1,641,600 | 1,680,100 | 1,711,800 | 1,774,100 | 1,860,500 |
| Inventory | US$ in thousands | 539,000 | 467,500 | 484,200 | 477,000 | 465,900 | 510,800 | 434,800 | 398,800 | 383,200 | 415,900 | 426,500 | 425,600 | 343,300 | 331,500 | 303,000 | 291,100 | 267,500 | 275,000 | 317,600 | 320,600 |
| Inventory turnover | 3.89 | 4.47 | 4.36 | 4.49 | 4.76 | 4.58 | 6.38 | 7.35 | 7.77 | 6.80 | 5.48 | 5.05 | 5.62 | 5.45 | 5.63 | 5.64 | 6.28 | 6.22 | 5.59 | 5.80 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,094,200K ÷ $539,000K
= 3.89
The inventory turnover ratio of Century Aluminum Company has fluctuated over the years based on the provided data. The ratio indicates how efficiently the company is managing its inventory by measuring the number of times inventory is sold and replaced within a specific period.
From December 31, 2019, to June 30, 2022, the inventory turnover ratio generally increased, reaching a peak of 7.77 on September 30, 2022, suggesting that the company was selling and restocking its inventory at a faster rate during this period.
However, from December 31, 2022, to June 30, 2024, the inventory turnover ratio started to decline. By December 31, 2024, the ratio decreased to 3.89, indicating a slowdown in the company's inventory management efficiency.
The declining trend in inventory turnover may imply potential issues such as overstocking, slow sales, or inefficient inventory management practices. It is essential for Century Aluminum Company to closely monitor and address the reasons behind the decreasing inventory turnover to optimize its working capital and operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024