Century Aluminum Company (CENX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 4.33% | 0.82% | 2.99% | -2.27% | -1.30% |
| Operating profit margin | 1.50% | -2.62% | 1.59% | -5.02% | -3.93% |
| Pretax margin | -2.72% | 0.58% | -4.76% | -7.87% | -4.86% |
| Net profit margin | -2.03% | -0.25% | -4.02% | -7.68% | -4.40% |
Century Aluminum Company's profitability ratios have shown fluctuating trends over the past five years:
1. Gross Profit Margin: The gross profit margin has shown inconsistent performance over the years, peaking at 4.33% in 2023. This indicates that the company has been able to improve its cost management and/or pricing strategies in the most recent year compared to previous years.
2. Operating Profit Margin: Century Aluminum's operating profit margin has been volatile, with negative margins in 2020 and 2022. However, the company managed to achieve a positive operating profit margin of 1.50% in 2023, which suggests improved operational efficiency or cost control measures.
3. Pretax Margin: The company's pre-tax margin remained negative in 2023, although it improved compared to the preceding two years. This indicates that while Century Aluminum is still experiencing losses before taxes, the extent of the losses has decreased, possibly due to better cost-cutting initiatives or revenue enhancements.
4. Net Profit Margin: Century Aluminum's net profit margin has also been negative in 2023, albeit showing a slight improvement from the previous two years. The negative net profit margin indicates that the company's expenses still exceed its revenues, resulting in overall losses. However, the narrowing of the net profit margin suggests some progress in the company's efforts to control costs or enhance revenues.
Overall, Century Aluminum Company has shown some improvement in its profitability ratios in 2023 compared to the prior years. However, the company continues to face challenges in achieving consistent profitability, as indicated by the negative margins in key profitability ratios.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.72% | -10.20% | 4.20% | -5.75% | -4.81% |
| Return on assets (ROA) | -2.33% | -0.96% | -10.64% | -8.81% | -5.39% |
| Return on total capital | 4.04% | -19.23% | 8.79% | -10.20% | -7.16% |
| Return on equity (ROE) | -12.12% | -3.53% | -39.69% | -22.58% | -11.97% |
Century Aluminum Company's profitability ratios reflect fluctuations over the past five years.
1. Operating return on assets (Operating ROA) improved in 2023 to 1.72% from negative figures in prior years, indicating that the company generated a modest return on its operating assets during the year.
2. Return on assets (ROA) was negative in 2023 at -2.33%, showing a decline from the previous year. This ratio measures the company's overall ability to generate profit from its assets.
3. Return on total capital increased to 4.04% in 2023, indicating a positive return on the total capital employed by the company. However, the ratio had been negative in 2022, showing an improvement in capital utilization.
4. Return on equity (ROE) remained negative in 2023 at -12.12%, indicating that the company continues to struggle with generating returns for its equity holders. This ratio has fluctuated over the years but stayed in negative territory.
Overall, the company's profitability ratios suggest a mixed performance, with some improvements noted in certain ratios in 2023 compared to previous years. However, challenges remain in generating positive returns for both assets and equity holders.