Century Aluminum Company (CENX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.32% | 4.33% | 0.82% | 2.99% | -2.27% |
| Operating profit margin | 5.46% | 1.50% | -2.62% | 1.59% | -5.02% |
| Pretax margin | 15.30% | -2.72% | 0.58% | -4.76% | -7.87% |
| Net profit margin | 15.16% | -2.03% | -0.25% | -4.02% | -7.68% |
Century Aluminum Company's profitability has shown improvement over the past few years based on the analysis of key profitability ratios.
1. Gross Profit Margin:
- The gross profit margin, which indicates the percentage of revenue remaining after subtracting the cost of goods sold, has shown a positive trend. It increased from a negative value of -2.27% in 2020 to a healthier 8.32% in 2024. This indicates that the company has been able to better control its production costs and improve its pricing strategies.
2. Operating Profit Margin:
- The operating profit margin, a measure of a company's operating efficiency and cost control, has fluctuated over the years. It improved from -5.02% in 2020 to 5.46% in 2024, indicating the company's ability to generate profits from its core operations.
3. Pretax Margin:
- The pretax margin, which reflects the company's profitability before taxes, has shown significant improvement, increasing from -7.87% in 2020 to 15.30% in 2024. This indicates that the company has been able to effectively manage its operating expenses and generate higher profits.
4. Net Profit Margin:
- The net profit margin, a key indicator of overall profitability, also saw a remarkable improvement from -7.68% in 2020 to 15.16% in 2024. This indicates that Century Aluminum Company has been successful in managing its expenses, including interest and taxes, and increasing its bottom line profitability.
Overall, the positive trend in profitability ratios suggests that Century Aluminum Company has made significant strides in improving its operational efficiency, controlling costs, and enhancing profitability over the years. This bodes well for the company's financial health and future growth prospects.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.26% | 1.72% | -10.20% | 4.20% | -5.75% |
| Return on assets (ROA) | 17.37% | -2.33% | -0.96% | -10.64% | -8.81% |
| Return on total capital | 17.48% | 4.04% | -19.23% | 8.79% | -10.20% |
| Return on equity (ROE) | 48.50% | -12.12% | -3.53% | -39.69% | -22.58% |
Century Aluminum Company has shown a mixed performance in terms of profitability ratios.
- Operating Return on Assets (Operating ROA): The company's operating return on assets has fluctuated over the years, starting with a negative -5.75% in 2020, improving to 4.20% in 2021, declining sharply to -10.20% in 2022, then recovering to 1.72% in 2023 and further improving to 6.26% in 2024. This indicates that the company has been able to generate positive returns from its operational activities in the most recent years.
- Return on Assets (ROA): Century Aluminum's return on assets was consistently negative from 2020 to 2022, with improvements seen in 2023 and a significant positive performance in 2024 at 17.37%. This suggests that the company was not efficiently utilizing its assets to generate profits initially, but has shown improvement in recent years.
- Return on Total Capital: The return on total capital ratio also shows a mixed trend for the company, with negative returns in 2020 and 2022, significant improvement in 2021 and 2024, and moderate return in 2023. This indicates that the company's profitability concerning its total capital employed has varied over the years.
- Return on Equity (ROE): Century Aluminum's return on equity has been negative in the initial years, progressively improving to 48.50% in 2024. This highlights a positive trend in generating profits for the shareholders over the years.
Overall, while the company faced challenges in generating profits and returns in the earlier years, there has been a noticeable improvement in profitability ratios in the recent years, particularly in 2024, indicating a positive outlook towards profitability and shareholder value.