Century Aluminum Company (CENX)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 121,400 | 31,800 | -150,200 | 66,000 | -80,500 |
| Long-term debt | US$ in thousands | — | 430,900 | 381,600 | 329,800 | 243,100 |
| Total stockholders’ equity | US$ in thousands | 694,400 | 355,600 | 399,300 | 421,000 | 546,100 |
| Return on total capital | 17.48% | 4.04% | -19.23% | 8.79% | -10.20% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $121,400K ÷ ($—K + $694,400K)
= 17.48%
Century Aluminum Company's return on total capital has fluctuated over the past five years. In December 2020, the company reported a negative return on total capital of -10.20%, indicating that the company's capital investment did not generate a positive return during that period.
However, the situation improved in the following years, with the return on total capital increasing to 8.79% in December 2021 and further to 17.48% in December 2024. These positive figures suggest that the company's use of capital became more efficient in generating profits.
On the other hand, there were also periods of decline, such as in December 2022 when the return on total capital fell to -19.23%. Despite this setback, the company managed to bounce back in December 2023, achieving a return on total capital of 4.04%.
Overall, the trend in Century Aluminum Company's return on total capital shows variability over the years, with periods of both positive and negative performance. It indicates that the company's ability to generate returns from its total capital investment has been inconsistent but has shown improvement in recent years.
Peer comparison
Dec 31, 2024