Century Aluminum Company (CENX)
Working capital 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 current assets | US$ in thousands | 767,100 | 677,800 | 618,200 | 456,000 | 487,300 |
| Total current liabilities | US$ in thousands | 763,000 | 410,700 | 547,400 | 240,300 | 233,700 |
| Working capital turnover | 517.95 | 21.42 | 58.72 | 7.44 | 7.24 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,123,600K ÷ ($767,100K – $763,000K)
= 517.95
Century Aluminum Company's working capital turnover ratio has shown significant fluctuations over the past five years. In 2023, the working capital turnover ratio increased substantially to 517.95, indicating a drastic improvement in the efficiency of utilizing working capital to generate sales revenue compared to the previous year. This sharp increase suggests that the company has managed its working capital more effectively and has been able to generate higher sales with relatively lower levels of working capital.
In contrast, the working capital turnover ratio was considerably lower in 2022 at 21.42, indicating a less efficient utilization of working capital to generate revenue. However, the ratios in 2021, 2020, and 2019 were relatively consistent around the range of 7 to 8, indicating a relatively stable efficiency in utilizing working capital to generate sales revenue during those years.
Overall, the significant increase in the working capital turnover ratio in 2023 compared to the previous years suggests an improvement in the efficiency of Century Aluminum Company in managing its working capital and generating sales revenue. This improvement could be attributed to better inventory management, receivables collection, and payables management practices implemented by the company during that period.
Peer comparison
Dec 31, 2023