Century Aluminum Company (CENX)
Payables 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 |
| Payables | US$ in thousands | 187,300 | 200,300 | 180,500 | 249,500 | 221,400 | 191,200 | 149,200 | 167,300 | 170,900 | 229,500 | 202,800 | 186,500 | 165,300 | 133,600 | 116,200 | 106,100 | 85,600 | 87,700 | 87,100 | 97,100 |
| Payables turnover | 11.18 | 10.44 | 11.69 | 8.58 | 10.02 | 12.24 | 18.60 | 17.51 | 17.42 | 12.33 | 11.54 | 11.52 | 11.66 | 13.52 | 14.68 | 15.47 | 19.63 | 19.52 | 20.37 | 19.16 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,094,200K ÷ $187,300K
= 11.18
The payables turnover ratio for Century Aluminum Company has shown fluctuations over the periods analyzed. The ratio ranged from a high of 20.37 in March 2020 to a low of 8.58 in December 2023. The general declining trend from 2020 to 2023 indicates that the company took longer to pay its suppliers, which could imply potential liquidity issues or changes in payment terms.
However, there was a slight improvement in the ratio in the most recent periods, with figures ranging from 11.69 in March 2024 to 17.51 in December 2022. This improvement suggests that the company may have focused on managing its payables more efficiently, possibly renegotiating payment terms with suppliers or enhancing cash flow management.
It is essential for investors and stakeholders to continue monitoring the payables turnover ratio to assess the company's ability to manage its accounts payable effectively and maintain healthy relationships with suppliers. A higher payables turnover ratio generally indicates that the company is paying its suppliers more quickly, while a lower ratio could signal potential cash flow challenges or changes in vendor relationships.
Peer comparison
Dec 31, 2024