Alcoa Corp (AA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 2.79% | 14.04% | 27.88% | 9.91% | -0.43% |
| Operating profit margin | -1.45% | 10.60% | 35.31% | 8.78% | -18.38% |
| Pretax margin | -4.40% | 4.39% | 8.88% | 0.19% | -6.90% |
| Net profit margin | -6.20% | -1.00% | 3.60% | -1.86% | -10.93% |
Alcoa Corp's profitability ratios have displayed variability over the past five years. The gross profit margin has shown a declining trend, decreasing from 24.68% in 2021 to 6.99% in 2023. This indicates that Alcoa has been experiencing challenges in maintaining profitability on its sales after accounting for the cost of goods sold.
The operating profit margin also exhibited fluctuations, with a notable decline in 2023 to -3.67%, compared to 17.09% in 2021. This suggests that Alcoa's operating expenses have had a significant impact on its profitability in recent years.
Similarly, the pretax margin and net profit margin have shown inconsistency, with negative margins recorded in 2023 (-5.54% and -6.17%, respectively). This indicates that Alcoa may be facing operational or financial challenges affecting its ability to generate profits before and after tax.
Overall, the decreasing trend in gross profit margin and the presence of negative operating, pretax, and net profit margins in 2023 raise concerns about Alcoa's profitability and financial performance. Further investigation into the company's cost structure, pricing strategies, and overall operational efficiency may be warranted to address these challenges and improve profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.07% | 8.85% | 27.99% | 5.39% | -12.93% |
| Return on assets (ROA) | -4.60% | -0.83% | 2.86% | -1.14% | -7.69% |
| Return on total capital | -5.93% | 9.40% | 19.58% | 2.82% | -9.96% |
| Return on equity (ROE) | -15.31% | -2.42% | 9.18% | -5.13% | -27.36% |
Alcoa Corp's profitability ratios have shown significant fluctuations over the past five years.
- Operating return on assets (Operating ROA) has varied from a high of 13.82% in 2021 to a low of -2.73% in 2023. This indicates that the company's ability to generate operating income from its assets has been inconsistent.
- Return on assets (ROA) has also been negative in most years, reaching its lowest point at -7.69% in 2019. This suggests that the company has struggled to generate profits from its assets.
- Return on total capital has ranged from a high of 32.46% in 2021 to a low of -6.38% in 2023. This ratio reflects the overall profitability of the company in relation to its total capital employed.
- Return on equity (ROE) has shown a similar pattern of variability, with a high of 9.18% in 2021 and a low of -27.36% in 2019. This metric reveals how effectively the company is generating profits from its shareholders' equity.
Overall, the profitability ratios of Alcoa Corp indicate a lack of consistent performance and highlight the challenges the company has faced in maintaining profitability over the past few years. Investors and stakeholders may want to closely monitor the company's financial performance to assess its future prospects.