Century Aluminum Company (CENX)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 1,977,900 | 2,019,800 | 1,978,900 |
| Inventory | US$ in thousands | 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 | 322,300 | 339,200 | 327,400 |
| Inventory turnover | 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 | 6.14 | 5.95 | 6.04 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,139,800K ÷ $477,000K
= 4.49
Century Aluminum Company's inventory turnover has shown fluctuation over the past years, ranging from a low of 4.49 to a high of 7.77. The inventory turnover 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.
The trend in Century Aluminum Company's inventory turnover shows some variability, possibly reflecting changes in demand for the company's products or adjustments in inventory management practices. Overall, the inventory turnover ratio has been relatively stable around an average of 5.5 to 6.5 times per year, indicating that the company is able to sell and replace its inventory multiple times annually.
A higher inventory turnover ratio, such as the peaks observed in 2019 and 2022, may suggest that Century Aluminum is effectively managing its inventory levels, reducing the risk of obsolete inventory or storage costs. Conversely, lower inventory turnover ratios, like those seen in 2020 and 2023, could indicate overstocking or potential inefficiencies in the company's inventory management processes.
In conclusion, an analysis of Century Aluminum Company's inventory turnover ratios over the years provides insights into the company's inventory management efficiency and operational performance. It is essential for stakeholders to monitor this metric to assess the company's ability to effectively balance inventory levels with customer demand.
Peer comparison
Dec 31, 2023
Dec 31, 2023