Century Aluminum Company (CENX)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 81.37 | 76.62 | 79.65 | 57.19 | 49.69 | 46.98 | 53.65 | 66.55 | 72.32 | 65.00 | 66.96 | 64.83 | 64.72 | 58.11 | 58.64 | 65.34 | 62.90 | 59.48 | 61.30 | 60.39 |
| Days of sales outstanding (DSO) | days | 12.26 | 7.72 | 4.50 | 4.41 | 4.57 | 5.19 | 8.76 | 11.08 | 7.80 | 10.16 | 13.42 | 14.62 | 13.94 | 14.50 | 9.83 | 14.60 | 19.91 | 20.34 | 21.48 | 21.71 |
| Number of days of payables | days | 42.56 | 36.41 | 29.82 | 19.62 | 20.85 | 20.95 | 29.61 | 31.64 | 31.69 | 31.30 | 26.99 | 24.86 | 23.59 | 18.60 | 18.70 | 17.92 | 19.05 | 20.67 | 17.76 | 20.88 |
| Cash conversion cycle | days | 51.07 | 47.94 | 54.34 | 41.98 | 33.42 | 31.22 | 32.81 | 45.98 | 48.43 | 43.86 | 53.39 | 54.59 | 55.07 | 54.02 | 49.77 | 62.02 | 63.76 | 59.15 | 65.02 | 61.21 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 81.37 + 12.26 – 42.56
= 51.07
The cash conversion cycle of Century Aluminum Company has fluctuated over the past few years, ranging from a low of 31.22 days to a high of 65.02 days. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, then back into cash through the collection of accounts receivable.
A shorter cash conversion cycle indicates that a company is able to efficiently manage its working capital and generate cash quickly from its operations. On the other hand, a longer cycle may signal inefficiencies in inventory management, sales processes, or collections.
Century Aluminum Company's cash conversion cycle has shown some inconsistency, with periods of shorter cycles followed by longer cycles. It's important for the company to closely monitor and manage its working capital components to ensure a healthy cash conversion cycle, which can have implications for liquidity and overall financial performance.
Peer comparison
Dec 31, 2023