Alcoa Corp (AA)

Net profit margin is a key financial ratio that indicates the percentage of revenue that remains as profit after all expenses have been deducted. A positive net profit margin reflects profitability, while a negative margin indicates a loss.

Analyzing the net profit margin trend for Alcoa Corp from 2019 to 2023, we observe fluctuations in profitability. In 2019, the company experienced a significant decline in profitability with a net profit margin of -10.78%, indicating a substantial loss relative to revenue.

However, in the subsequent years, there were fluctuations in performance. By 2021, Alcoa Corp managed to achieve a net profit margin of 3.53%, reflecting a return to profitability and improvement in cost management. However, this positive trend was not sustained, as the net profit margin decreased to -1.83% in 2020 and further worsened to -0.99% in 2022.

In the most recent financial year, ending December 31, 2023, Alcoa Corp's net profit margin deteriorated to -6.17%, indicating a further decline in profitability compared to the previous year. This negative trend in net profit margin raises concerns about the company's ability to generate sustainable profits and manage expenses effectively.

Overall, the fluctuating and predominantly negative net profit margins of Alcoa Corp suggest inconsistent profitability and financial performance, underscoring the need for the company to address cost management, revenue generation, and operational efficiency to enhance long-term sustainability and investor confidence.

Peer comparison

Dec 31, 2023