Century Aluminum Company (CENX)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 121,400 | 31,800 | -150,200 | 66,000 | -80,500 |
| Total assets | US$ in thousands | 1,939,400 | 1,846,500 | 1,472,000 | 1,569,900 | 1,399,600 |
| Operating ROA | 6.26% | 1.72% | -10.20% | 4.20% | -5.75% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $121,400K ÷ $1,939,400K
= 6.26%
Century Aluminum Company's operating return on assets (Operating ROA) has displayed fluctuating trends over the past five years.
In December 2020, the company reported a negative operating ROA of -5.75%, indicating that its operating income was insufficient to generate a positive return on its assets.
By December 2021, Century Aluminum Company's operating ROA improved significantly to 4.20%, suggesting that the company's operating income had increased relative to its assets, leading to a more favorable return.
However, in December 2022, the company experienced a decline in its operating ROA to -10.20%, signaling a decrease in operating income efficiency relative to its assets. This negative performance may raise concerns about the company's operational effectiveness during that period.
In December 2023, Century Aluminum Company managed to improve its operating ROA to 1.72%, indicating a slight recovery in generating returns from its assets compared to the previous year.
The most recent data as of December 31, 2024, shows a notable improvement in the company's operating ROA to 6.26%, suggesting that Century Aluminum Company effectively utilized its assets to generate operating income.
Overall, Century Aluminum Company's operating return on assets has seen fluctuations, with some years displaying positive returns, while others have shown negative returns. It is important for the company to focus on maintaining or improving its operating ROA to ensure efficient use of its assets and sustainable profitability.
Peer comparison
Dec 31, 2024