Century Aluminum Company (CENX)

Liquidity ratios

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
Current ratio 1.01 1.08 1.22 1.64 1.65 1.87 1.70 1.27 1.13 1.08 1.21 1.21 1.90 2.20 2.13 2.05 2.09 2.23 2.45 2.10
Quick ratio 0.23 0.21 0.17 0.26 0.31 0.37 0.38 0.30 0.22 0.28 0.26 0.29 0.59 0.73 0.88 0.77 0.60 0.60 0.68 0.60
Cash ratio 0.12 0.11 0.09 0.08 0.13 0.16 0.07 0.05 0.05 0.11 0.02 0.07 0.34 0.40 0.70 0.52 0.17 0.11 0.13 0.10

Century Aluminum Company's liquidity ratios provide insights into the company's ability to meet its short-term financial obligations.

The current ratio has shown some fluctuation over the periods analyzed, with a general decreasing trend from 2.45 in March 2019 to 1.01 in December 2023. The ratio indicates that the company's current assets may not be sufficient to cover its current liabilities, especially in the most recent period.

The quick ratio, which excludes inventory from current assets, has also been decreasing over time from 0.68 in March 2019 to 0.23 in December 2023. This suggests that Century Aluminum Company may struggle to meet its immediate obligations using its most liquid assets.

Moreover, the cash ratio, which is the most conservative measure of liquidity, has also exhibited a decline over the periods analyzed, dropping from 0.70 in June 2020 to 0.12 in December 2023. This indicates that the company's cash and cash equivalents may not be sufficient to cover its short-term liabilities.

Overall, Century Aluminum Company's liquidity ratios suggest potential liquidity challenges, as indicated by the decreasing trend in the current, quick, and cash ratios over the periods examined. Investors and creditors may want to carefully monitor the company's ability to generate sufficient cash flows or consider potential liquidity risks.

Additional liquidity measure

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
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

Century Aluminum Company's cash conversion cycle, which measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has shown fluctuations over the past few quarters.

The cash conversion cycle ranged from a low of 31.22 days in September 2022 to a high of 65.02 days in March 2019. A lower cash conversion cycle indicates that the company is able to quickly convert its investments into cash, reflecting efficient operations. Conversely, a higher cash conversion cycle suggests inefficiencies in managing inventory and collecting receivables.

In the most recent quarter, ending December 31, 2023, the cash conversion cycle was 51.07 days, indicating a moderate efficiency in converting resources into cash. It is essential for the company to closely monitor and manage its inventory levels, accounts receivable, and accounts payable to optimize the cash conversion cycle and enhance liquidity.

Overall, Century Aluminum Company's cash conversion cycle trend reflects variations in operational efficiency and the effectiveness of its working capital management. Monitoring this metric over time can provide valuable insights into the company's financial health and efficiency in generating cash flows.