Century Aluminum Company (CENX)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,139,800 | 2,929,400 | 2,148,000 | 1,641,600 | 1,860,500 |
| Payables | US$ in thousands | 249,500 | 167,300 | 186,500 | 106,100 | 97,100 |
| Payables turnover | 8.58 | 17.51 | 11.52 | 15.47 | 19.16 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,139,800K ÷ $249,500K
= 8.58
The payables turnover ratio measures how efficiently a company pays its suppliers. Century Aluminum Company's payables turnover has fluctuated over the past five years. In 2019, the payables turnover was 19.16, indicating the company was paying its suppliers approximately 19 times a year. However, this ratio decreased to 15.47 in 2020 before increasing to 11.52 in 2021 and further to 17.51 in 2022. By the end of 2023, the payables turnover ratio stood at 8.58, showing a significant decrease compared to the previous year. This suggests that Century Aluminum Company may be taking longer to pay its suppliers, which could potentially strain its relationships with vendors and impact its liquidity position. Further analysis of the company's payables management practices and financial health would be necessary to fully understand the implications of this trend.
Peer comparison
Dec 31, 2023