Century Aluminum Company (CENX)
Working capital turnover
| Dec 31, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,222,300 | 2,115,300 | 2,134,400 | 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 |
| Total current assets | US$ in thousands | 802,800 | 735,900 | 781,100 | 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 |
| Total current liabilities | US$ in thousands | 463,700 | 428,100 | 468,900 | 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 |
| Working capital turnover | 6.55 | 6.87 | 6.84 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,222,300K ÷ ($802,800K – $463,700K)
= 6.55
Century Aluminum Company's working capital turnover ratio has shown significant fluctuations over the past few years.
The ratio increased steadily from December 31, 2019, to December 31, 2021, reaching relatively high levels, indicating that the company was effectively utilizing its working capital to generate revenue.
However, there was a substantial jump in the ratio in the first quarter of 2022, exceeding 30, which may indicate a sudden increase in sales relative to the working capital employed. This could be a positive sign of efficient working capital management or an aggressive sales strategy.
Subsequently, the ratio fluctuated but remained relatively high compared to earlier periods until September 30, 2023, where it reached an exceptionally high level of 652.68. Such a significant spike may indicate a one-time anomaly or a specific event impacting working capital management and revenue generation.
The ratio then dropped back to single digits in the next quarter, indicating a return to more typical levels. Additionally, the working capital turnover stabilized around 6-7 in the quarters that followed, suggesting a more sustainable and consistent level of working capital efficiency.
Overall, Century Aluminum Company has demonstrated varying levels of working capital turnover efficiency over the analyzed period, with some fluctuations that may warrant further investigation to understand the factors contributing to these changes.
Peer comparison
Dec 31, 2024