Century Aluminum Company (CENX)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -43,100 | -14,100 | -167,100 | -123,300 | -80,800 |
| Total stockholders’ equity | US$ in thousands | 355,600 | 399,300 | 421,000 | 546,100 | 675,000 |
| ROE | -12.12% | -3.53% | -39.69% | -22.58% | -11.97% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-43,100K ÷ $355,600K
= -12.12%
Century Aluminum Company's return on equity (ROE) has fluctuated significantly over the past five years. In 2023, the ROE stands at -12.12%, representing a decline compared to the previous year's -3.53%. The negative ROE in 2023 indicates that the company generated a net loss on shareholders' equity, reflecting challenges in profitability and efficiency.
The ROE in 2021 was particularly low at -39.69%, highlighting a substantial decline in the company's ability to generate profits relative to its shareholders' equity. This performance was an extension of the negative trend observed in 2020 and 2019, where the ROE stood at -22.58% and -11.97%, respectively.
Overall, the negative trend in ROE over the past five years raises concerns about Century Aluminum Company's profitability and operational efficiency. The company may need to address underlying issues affecting its performance to improve ROE and enhance shareholder value in the future.
Peer comparison
Dec 31, 2023