Century Aluminum Company (CENX)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 29.77 47.26 81.03 82.70 79.81 70.28 41.67 32.95 46.77 35.93 27.20 24.96 26.18 25.18 37.12 25.00 18.33 17.95 16.99 16.82
Payables turnover 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 17.66 20.55 17.48
Working capital turnover 652.68 61.23 31.23 22.56 21.42 17.30 18.58 31.20 58.72 81.43 30.17 25.65 7.44 6.82 6.02 5.91 7.24 7.21 6.50 7.60

The activity ratios of Century Aluminum Company provide insights into its operational efficiency and effectiveness in managing its assets and liabilities.

Inventory turnover indicates how many times the company's inventory is sold and replaced within a given period. The trend shows a slight decline in inventory turnover from 6.04 in Q1 2019 to 4.49 in Q4 2023, suggesting that the company may be holding onto its inventory for a longer period, which could indicate changing demand or production inefficiencies.

Receivables turnover measures how quickly the company collects on its credit sales. Century Aluminum Company has shown fluctuating receivables turnover ratios, with a peak of 81.03 in Q2 2023 and a low of 16.82 in Q1 2019. The company seems to be improving its collection efficiency overall.

Payables turnover reflects how quickly the company pays its suppliers. The company has consistently maintained a healthy payables turnover ratio, indicating efficient management of its payables and relationships with suppliers.

Working capital turnover ratio shows how efficiently the company is using its working capital to generate sales. Century Aluminum Company shows a significant increase in working capital turnover from 6.50 in Q1 2019 to 652.68 in Q4 2023, indicating a substantial improvement in utilizing its working capital to generate revenue.

Overall, Century Aluminum Company has varying trends in its activity ratios, with some areas showing improvements while others show signs of potential challenges. Monitoring these ratios can help stakeholders assess the company's operational performance and make informed decisions.

Average number of days

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
Days of inventory on hand (DOH) days 81.37 76.62 79.65 57.19 49.69 46.98 53.65 66.55 72.32 65.00 66.96 64.83 64.72 58.11 58.64 65.34 62.90 59.48 61.30 60.39
Days of sales outstanding (DSO) days 12.26 7.72 4.50 4.41 4.57 5.19 8.76 11.08 7.80 10.16 13.42 14.62 13.94 14.50 9.83 14.60 19.91 20.34 21.48 21.71
Number of days of payables days 42.56 36.41 29.82 19.62 20.85 20.95 29.61 31.64 31.69 31.30 26.99 24.86 23.59 18.60 18.70 17.92 19.05 20.67 17.76 20.88

Days of Inventory on Hand (DOH) for Century Aluminum Company has shown some fluctuation over the quarters but has generally remained within the range of 46.98 days to 81.37 days. This indicates that the company takes around 46 to 81 days to convert its inventory into sales.

Days of Sales Outstanding (DSO) have also varied over the quarters, with a range from 4.41 days to 21.71 days. The DSO represents the average number of days the company takes to collect revenue after making a sale, and lower DSO values are generally preferred as they indicate faster collection of payments.

The Number of Days of Payables reflects the average number of days the company takes to pay its suppliers. The range for Century Aluminum has been between 17.92 days and 42.56 days, indicating the time it takes the company to settle its payables.

Overall, these activity ratios suggest that Century Aluminum Company has been managing its inventory levels, sales collection, and payable periods in a relatively stable manner over the quarters, which is important for maintaining efficient operations and managing cash flows effectively.

Long-term

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
Fixed asset turnover 2.66 3.10 4.59 7.16 7.69 8.23 7.86 5.40 4.66 3.68 2.90 2.26 1.82 1.84 1.85 1.89 1.93 1.99 2.03 2.01
Total asset turnover 1.45 1.75 2.26 3.80 3.89 3.85 3.66 2.85 2.65 2.15 1.79 1.44 1.15 1.18 1.11 1.11 1.22 1.27 1.27 1.26

The fixed asset turnover ratio for Century Aluminum Company has shown fluctuation over the past five years, ranging from a low of 1.82 in December 2020 to a high of 8.23 in September 2022. This ratio indicates the company's ability to generate revenue relative to its investment in fixed assets, with a higher ratio generally viewed as more favorable.

On the other hand, the total asset turnover ratio has also varied, from a low of 1.11 in March 2020 to a high of 3.89 in December 2022. This ratio reflects how efficiently the company is utilizing all its assets to generate sales. A higher ratio suggests better asset utilization.

It is notable that both the fixed asset turnover and total asset turnover ratios have generally been on an upward trend in recent periods, indicating potential improvements in asset utilization and revenue generation efficiency for Century Aluminum Company. However, the company should continue to monitor and manage its asset turnover ratios to ensure optimal performance and profitability.