Century Aluminum Company (CENX)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,123,600 | 5,722,400 | 4,157,500 | 1,605,100 | 1,836,600 |
| Receivables | US$ in thousands | 89,900 | 71,700 | 88,900 | 61,300 | 100,200 |
| Receivables turnover | 23.62 | 79.81 | 46.77 | 26.18 | 18.33 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,123,600K ÷ $89,900K
= 23.62
The receivables turnover ratio measures how efficiently Century Aluminum Company is collecting payments from its customers. A higher turnover ratio indicates that the company is collecting its accounts receivable more quickly.
From the data provided, we observe fluctuations in the receivables turnover ratio over the past five years. In 2023, the ratio stands at 23.62, significantly lower than the previous year, which recorded a high ratio of 79.81 in 2022. This could imply that in 2023, the company took longer to collect payments from its customers compared to the previous year.
When we compare the 2023 ratio to 2021 and 2020, the lower value suggests that the company's collection efficiency has decreased. However, it is still higher than the ratio reported in 2019, indicating an improvement over a more extended period.
Overall, it is essential for Century Aluminum to assess the reasons behind the fluctuations in the receivables turnover ratio to ensure efficient management of accounts receivable and timely collection of payments from customers.
Peer comparison
Dec 31, 2023