Century Aluminum Company (CENX)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 31,800 | -150,200 | 66,000 | -80,500 | -72,100 |
| Total assets | US$ in thousands | 1,846,500 | 1,472,000 | 1,569,900 | 1,399,600 | 1,499,700 |
| Operating ROA | 1.72% | -10.20% | 4.20% | -5.75% | -4.81% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $31,800K ÷ $1,846,500K
= 1.72%
Century Aluminum Company's operating return on assets (ROA) has fluctuated significantly over the past five years. In 2023, the operating ROA stood at 1.72%, indicating that the company generated a modest return on its operational assets during the year. This is a positive improvement compared to the negative operating ROA of -10.20% in 2022.
The 2021 operating ROA of 4.20% reflected a relatively stronger performance, demonstrating the company's ability to efficiently utilize its assets to generate operating profits. However, in 2020 and 2019, Century Aluminum Company experienced negative operating ROA figures of -5.75% and -4.81% respectively, indicating operational inefficiencies during those years.
Overall, there seems to be a certain level of volatility in Century Aluminum Company's operating ROA performance, with notable fluctuations observed in recent years. It is essential for the company to focus on improving operational efficiency and asset utilization to sustainably increase its operating return on assets in the future.
Peer comparison
Dec 31, 2023