Century Aluminum Company (CENX)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 31,800 | -150,200 | 66,000 | -80,500 | -66,200 |
| Long-term debt | US$ in thousands | 430,900 | 381,600 | 329,800 | 243,100 | 249,200 |
| Total stockholders’ equity | US$ in thousands | 355,600 | 399,300 | 421,000 | 546,100 | 675,000 |
| Return on total capital | 4.04% | -19.23% | 8.79% | -10.20% | -7.16% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $31,800K ÷ ($430,900K + $355,600K)
= 4.04%
Century Aluminum Company's return on total capital fluctuated significantly over the five-year period from 2019 to 2023. In 2023, the return on total capital improved to 4.04%, indicating that the company generated a positive return on its total capital invested. This represents a recovery from the negative returns experienced in 2020 and 2022. However, the return is still below the levels achieved in 2021 and 2019.
The negative returns in 2020 and 2022 suggest that the company may have faced challenges in generating profits relative to its total invested capital during those years. The positive returns in 2021 and 2023 indicate improvements in the company's profitability and efficiency in utilizing its total capital.
Overall, Century Aluminum Company's return on total capital has shown a mix of positive and negative performance over the past five years, highlighting the company's ability to adapt to changing market conditions and operational challenges. Further analysis of the company's financial and operational performance is recommended to understand the factors driving these fluctuations in return on total capital.
Peer comparison
Dec 31, 2023