Kaiser Aluminum Corporation (KALU)

Short-term

Turnover ratios

Based on the provided data for Kaiser Aluminum Corporation, we can analyze the activity ratios as follows:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. Kaiser Aluminum's inventory turnover has been relatively stable over the years, ranging between 5.51 and 7.08. A higher turnover ratio indicates that the company is selling its inventory more quickly.
- The trend shows a slight fluctuation with some quarters showing higher turnover compared to others. It is essential for Kaiser Aluminum to maintain an optimal level of inventory turnover to avoid excess holding costs or stockouts.

2. Receivables Turnover:
- The data provided does not include information on receivables turnover for Kaiser Aluminum Corporation. This ratio is crucial as it measures how effectively the company collects payments from its customers. A higher turnover ratio indicates efficient collection practices.

3. Payables Turnover:
- Similar to receivables turnover, data on payables turnover for Kaiser Aluminum is not available. This ratio typically measures how efficiently a company pays its suppliers. A higher turnover ratio suggests the company is managing its payables well.

4. Working Capital Turnover:
- The working capital turnover ratio evaluates how efficiently the company is utilizing its working capital to generate revenue. Kaiser Aluminum's working capital turnover has shown an increasing trend over the years, indicating a more efficient utilization of working capital.
- An increasing trend in working capital turnover signifies improved operational efficiency and better management of current assets and liabilities.

In conclusion, while Kaiser Aluminum Corporation demonstrates stability in inventory turnover and improvement in working capital turnover, the lack of data on receivables and payables turnover limits a complete assessment of the company's activity ratios related to accounts receivable and accounts payable management. Monitoring and maintaining these activity ratios are crucial for the company's overall operational and financial performance.

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Average number of days

Kaiser Aluminum Corporation's Days of Inventory on Hand (DOH) ratio has fluctuated over the years, indicating varying levels of efficiency in managing its inventory. From March 31, 2020, to December 31, 2024, the DOH ranged from a low of 51.52 days to a high of 145.03 days. The company appeared to have significantly reduced its inventory holding period by the end of the period, which could imply improved inventory management practices.

On the other hand, there is no available data for the Days of Sales Outstanding (DSO) and Number of Days of Payables ratios, which limits a comprehensive analysis of Kaiser Aluminum Corporation's overall activity ratios. The lack of data for these ratios prevents a thorough evaluation of the company's efficiency in collecting receivables and paying its creditors.

In conclusion, while Kaiser Aluminum Corporation has shown improvement in its inventory management efficiency based on the DOH ratio, the absence of data for DSO and Payables ratios hinders a complete assessment of its overall activity performance.

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Long-term

The long-term activity ratios of Kaiser Aluminum Corporation can provide insights into how efficiently the company is utilizing its fixed and total assets to generate revenue.

1. Fixed Asset Turnover: This ratio measures the company's efficiency in generating sales from its investment in fixed assets. It shows how well the company is utilizing its property, plant, and equipment (fixed assets) to generate revenue. From the data provided, we see that the fixed asset turnover ratio has been fluctuating over the years. It increased steadily from March 31, 2020, to June 30, 2022, indicating improved efficiency in utilizing fixed assets to generate sales. However, there was a slight decline from March 31, 2022, to June 30, 2023. The ratio reached its peak at 3.46 on June 30, 2022, suggesting that for every dollar invested in fixed assets, the company generated $3.46 in sales.

2. Total Asset Turnover: This ratio evaluates how efficiently the company is generating sales from all its assets, including both fixed and current assets. A higher total asset turnover ratio indicates better asset utilization. The data for Kaiser Aluminum Corporation shows an increasing trend in the total asset turnover ratio from March 31, 2020, to December 31, 2022. This indicates that the company was becoming more efficient in using its assets to generate revenue during this period. The ratio peaked at 1.50 on December 31, 2022, meaning that for every dollar of assets, the company generated $1.50 in sales.

In conclusion, the analysis of Kaiser Aluminum Corporation's long-term activity ratios suggests an overall improvement in asset utilization efficiency over the years, as indicated by the increasing trend in both fixed asset turnover and total asset turnover ratios. However, it is essential to monitor these ratios regularly to ensure continued efficiency in utilizing assets to drive revenue growth.