Century Aluminum Company (CENX)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 185,000 | 91,900 | 46,700 | 124,200 | -36,500 |
| Revenue | US$ in thousands | 2,222,300 | 2,123,600 | 5,722,400 | 4,157,500 | 1,605,100 |
| Gross profit margin | 8.32% | 4.33% | 0.82% | 2.99% | -2.27% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $185,000K ÷ $2,222,300K
= 8.32%
Century Aluminum Company's gross profit margin has shown a fluctuating trend over the years. It started at a negative value of -2.27% at the end of December 31, 2020 and improved significantly to 8.32% by December 31, 2024.
The negative gross profit margin in 2020 indicates that the company's cost of goods sold exceeded its revenue from sales, resulting in a loss at the gross profit level. However, the subsequent positive trajectory suggests that Century Aluminum has been able to enhance its operational efficiency and pricing strategies to generate higher profits from its core business activities.
The steady improvement in gross profit margins from 2021 to 2024 reflects the company's ability to effectively manage its production costs and increase revenue generation. Achieving a gross profit margin of 8.32% by the end of 2024 indicates a positive profitability trend for Century Aluminum, implying that the company is effectively controlling its direct costs and maximizing its gross profit on each unit sold.
Overall, the increasing trend in Century Aluminum's gross profit margin demonstrates the company's efforts to enhance its operational performance and efficiency, ultimately leading to improved profitability over the specified period.
Peer comparison
Dec 31, 2024