Century Aluminum Company (CENX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.01 | 1.65 | 1.13 | 1.90 | 2.09 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $767,100K ÷ $763,000K
= 1.01
The current ratio of Century Aluminum Company has shown fluctuations over the past five years. In 2023, the current ratio decreased to 1.01 from 1.65 in 2022, indicating a decline in the company's ability to cover its short-term obligations with its current assets.
The significant drop in the current ratio from 2022 to 2023 may raise concerns about the company's liquidity position and its ability to meet its short-term liabilities. A current ratio below 1 suggests that the company may have difficulties in meeting its current obligations with its current assets alone.
It is important to further investigate the reasons behind the decrease in the current ratio and assess the company's working capital management, liquidity position, and potential impacts on its financial health and operational efficiency. Comparing the current ratio with industry benchmarks and peers can provide additional insights into Century Aluminum Company's liquidity performance relative to the industry.
Peer comparison
Dec 31, 2023