Century Aluminum Company (CENX)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,676,000 | 3,086,000 | 3,954,300 | 5,317,700 | 5,722,400 | 6,099,900 | 5,800,200 | 4,820,100 | 4,157,500 | 3,208,300 | 2,521,800 | 1,964,500 | 1,605,100 | 1,651,500 | 1,696,600 | 1,767,800 | 1,836,600 | 1,888,000 | 1,931,800 | 1,928,700 |
| Total current assets | US$ in thousands | 767,100 | 684,400 | 700,000 | 604,600 | 677,800 | 758,600 | 757,000 | 728,500 | 618,200 | 554,900 | 478,000 | 440,900 | 456,000 | 443,300 | 531,400 | 583,800 | 487,300 | 474,100 | 501,600 | 483,300 |
| Total current liabilities | US$ in thousands | 763,000 | 634,000 | 573,400 | 368,900 | 410,700 | 406,100 | 444,800 | 574,000 | 547,400 | 515,500 | 394,400 | 364,300 | 240,300 | 201,200 | 249,600 | 284,900 | 233,700 | 212,300 | 204,600 | 229,600 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,676,000K ÷ ($767,100K – $763,000K)
= 652.68
The working capital turnover for Century Aluminum Company has displayed fluctuating trends over the past few years, as indicated by the data provided. The ratios have varied widely, ranging from as high as 652.68 to as low as 5.91.
The substantial increase in working capital turnover from 2019 to 2020, with ratios climbing from 7.24 to 31.23, reflects potentially improved efficiency in managing working capital during that period. However, the ratios observed in subsequent quarters from 2020 to 2023 show a mix of fluctuations and declines.
The sharp decline in the most recent quarter (Dec 31, 2023) compared to the exceptionally high ratio in the previous quarter (Sep 30, 2023) is noteworthy and may warrant further investigation into the company's working capital management practices.
It is essential for the company to closely monitor these fluctuations and ensure that working capital turnover remains at reasonable levels to support its operational efficiency and financial performance. Further analysis and comparison with industry benchmarks could provide additional insights into the company's working capital management effectiveness.
Peer comparison
Dec 31, 2023