Century Aluminum Company (CENX)
Total asset 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 |
| Total assets | US$ in thousands | 1,846,500 | 1,472,000 | 1,569,900 | 1,399,600 | 1,499,700 |
| Total asset turnover | 1.15 | 3.89 | 2.65 | 1.15 | 1.22 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,123,600K ÷ $1,846,500K
= 1.15
Century Aluminum Company's total asset turnover has shown significant fluctuations over the past five years. In 2023, the total asset turnover ratio was 1.15, indicating that the company generated $1.15 in sales for every dollar of assets. This represents a notable decrease from the previous year's ratio of 3.89.
The steep decline in total asset turnover from 2022 to 2023 suggests that Century Aluminum may have experienced challenges in efficiently utilizing its assets to generate revenue. It is crucial for the company to effectively manage its assets and improve operational efficiency to enhance its overall performance.
Comparing the 2023 ratio to the ratios from 2021, 2020, and 2019, it is evident that the company's total asset turnover has been relatively volatile. This inconsistency may indicate varying levels of asset utilization efficiency or changes in the company's revenue generation capabilities over the years.
Overall, Century Aluminum Company needs to closely monitor and optimize its total asset turnover to ensure effective asset utilization and sustainable revenue generation in the future. Improving operational efficiency and strategic asset management practices can help the company enhance its financial performance and profitability.
Peer comparison
Dec 31, 2023