Century Aluminum Company (CENX)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 11.18 | 8.58 | 17.51 | 11.52 | 15.47 | |
| Number of days of payables | days | 32.64 | 42.56 | 20.85 | 31.69 | 23.59 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.18
= 32.64
The number of days of payables for Century Aluminum Company has shown fluctuations over the years. In December 2020, the company took approximately 23.59 days to pay its suppliers. This number increased to 31.69 days by December 2021, indicating a slower payment cycle. However, by December 2022, there was a significant improvement as the days of payables decreased to 20.85 days, suggesting more efficient payment practices.
The trend reversed in December 2023, with the number of days of payables sharply increasing to 42.56 days, signaling potential liquidity challenges or delays in supplier payments. Subsequently, by December 2024, the days of payables decreased to 32.64 days, but still higher compared to the previous year.
Overall, monitoring the number of days of payables is crucial as it provides insights into a company's liquidity management, vendor relationships, and operational efficiency. Century Aluminum Company should continue to evaluate and optimize its payables processes to maintain a healthy balance between managing cash flow effectively and preserving supplier relationships.
Peer comparison
Dec 31, 2024