Kaiser Aluminum Corporation (KALU)

Activity ratios

Short-term

Turnover 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
Inventory turnover 5.83 5.90 5.84 5.74 6.14 5.97 6.82 6.89 5.85 4.46 3.59 2.43 6.33 6.71 6.32 6.23 6.98 6.41 5.45 5.55
Receivables turnover 9.39 8.84 8.58 8.94 11.40 10.97 9.72 7.32 7.63 5.46 3.84 3.52 10.05 10.67 10.99 8.49 9.06 8.16 8.72 8.14
Payables turnover 11.00 11.85 12.32 10.94 10.57 9.53 7.64 6.71 6.74 5.41 4.00 3.61 11.18 16.67 18.79 10.65 13.48 13.16 12.43 10.44
Working capital turnover 4.92 5.03 4.86 4.99 5.43 5.18 4.88 4.12 3.39 2.54 1.96 1.85 1.18 1.31 1.45 2.45 2.48 3.11 3.30 3.41

Kaiser Aluminum Corp's activity ratios provide insights into the efficiency of its operations.

1. Inventory turnover: The company's inventory turnover ratio has been relatively stable around 5.7 to 6.0 over the past few quarters. This indicates that Kaiser Aluminum is effectively managing its inventory levels, with the ability to quickly convert inventory into sales.

2. Receivables turnover: The receivables turnover ratio has shown some fluctuations but remains relatively high, indicating that the company is efficient in collecting payments from customers. The decreasing trend in recent quarters may raise a slight concern about the company's credit policies or the quality of its receivables.

3. Payables turnover: Kaiser Aluminum's payables turnover ratio has fluctuated but generally remained above 10 in recent quarters. A high payables turnover ratio suggests that the company is managing its trade payables effectively by paying its suppliers promptly.

4. Working capital turnover: The working capital turnover ratio measures how efficiently the company is using its working capital to generate sales. Kaiser Aluminum has maintained a fairly consistent working capital turnover ratio between 4.2 and 5.5, indicating a relatively efficient use of its short-term assets to support its operations and generate revenue.

Overall, Kaiser Aluminum Corp's activity ratios suggest that the company is effectively managing its inventory, receivables, payables, and working capital, which is crucial for maintaining a healthy cash flow and operational efficiency.

Average number of days

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 62.65 61.89 62.46 63.54 59.48 61.10 53.48 52.97 62.37 81.86 101.70 149.90 57.66 54.39 57.77 58.56 52.26 56.92 66.99 65.72
Days of sales outstanding (DSO) days 38.87 41.29 42.53 40.85 32.03 33.26 37.57 49.89 47.86 66.81 95.15 103.73 36.32 34.22 33.22 42.97 40.28 44.73 41.86 44.86
Number of days of payables days 33.17 30.80 29.63 33.36 34.54 38.30 47.80 54.36 54.17 67.43 91.32 101.00 32.66 21.89 19.43 34.27 27.07 27.73 29.36 34.95

Kaiser Aluminum Corp's activity ratios provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): Kaiser Aluminum's DOH has shown a relatively stable trend over the past eight quarters, ranging between 60.30 days and 64.44 days. This indicates that the company is able to manage its inventory levels effectively without excessive holding costs.

2. Days of Sales Outstanding (DSO): The DSO for Kaiser Aluminum has fluctuated during the same period, with values ranging from 38.88 days to 45.27 days. Lower DSO values suggest quicker collection of receivables, indicating efficient credit management practices. However, the recent increase in DSO may warrant further monitoring to ensure timely collections.

3. Number of Days of Payables: Kaiser Aluminum's payables period has varied significantly, from 30.09 days to 54.76 days, over the last eight quarters. A longer payables period can suggest favorable credit terms with suppliers but may also indicate potential liquidity issues or strained supplier relationships.

In summary, while Kaiser Aluminum has been relatively effective in managing its inventory and receivables, fluctuations in payables days should be monitored for potential impacts on cash flow and supplier relationships.

Long-term

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
Fixed asset turnover 2.90 2.94 3.00 3.14 3.34 3.45 3.57 3.29 2.66 2.08 1.57 1.07 1.81 2.04 2.21 2.36 2.43 2.50 2.53 2.61
Total asset turnover 1.35 1.37 1.38 1.40 1.48 1.44 1.39 1.24 1.05 0.81 0.62 0.50 0.61 0.69 0.75 0.96 0.99 1.08 1.09 1.10

Kaiser Aluminum Corp's long-term activity ratios indicate the efficiency of the company in utilizing its assets to generate sales revenue. The fixed asset turnover ratio shows how effectively the company is utilizing its fixed assets to generate sales. Over the past eight quarters, the fixed asset turnover ratio has been decreasing gradually from 3.38 in Q4 2022 to 2.93 in Q4 2023. This may indicate a decrease in the efficiency of utilizing fixed assets to generate revenue.

On the other hand, the total asset turnover ratio considers all assets, both fixed and current, and measures the company's ability to generate sales using all its assets. Kaiser Aluminum Corp's total asset turnover ratio has been fluctuating over the quarters, with a peak of 1.50 in Q4 2022 and a low of 1.28 in Q1 2022. The ratio has generally been on a decreasing trend over the recent quarters, indicating a potential decrease in overall asset efficiency in generating sales.

Overall, the declining trend in both fixed asset turnover and total asset turnover ratios may suggest that Kaiser Aluminum Corp could be experiencing challenges in optimizing the use of its assets to generate sales revenue. Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's performance in this aspect.