Century Aluminum Company (CENX)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,222,300 | 2,123,600 | 5,722,400 | 4,157,500 | 1,605,100 |
| Receivables | US$ in thousands | 89,000 | 89,900 | 71,700 | 88,900 | 61,300 |
| Receivables turnover | 24.97 | 23.62 | 79.81 | 46.77 | 26.18 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,222,300K ÷ $89,000K
= 24.97
The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. Century Aluminum Company's receivables turnover has shown significant fluctuation over the past five years. In 2020, the ratio was 26.18, indicating that the company collected its receivables approximately 26 times during that year.
The ratio improved substantially in 2021 to 46.77, suggesting a more efficient collection process. This improvement continued into 2022 with a receivables turnover of 79.81, signifying an even better ability to collect payments from customers.
However, there was a notable decline in 2023, with the ratio dropping to 23.62, indicating a potential slowdown in receivables collection. This downtrend was relatively modestly mitigated in 2024, as the receivables turnover slightly increased to 24.97.
In summary, Century Aluminum Company's receivables turnover has exhibited some volatility in recent years, with significant improvements being made in 2021 and 2022, though followed by a slight decline in 2023. Continued monitoring and analysis of this ratio will be essential to assess the company's effectiveness in managing its accounts receivable and ensuring timely collection of payments.
Peer comparison
Dec 31, 2024