Century Aluminum Company (CENX)
Return on total capital
| Dec 31, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 121,400 | 13,300 | 6,200 | 31,800 | -27,900 | -55,200 | -204,000 | -150,200 | -69,200 | 22,600 | 184,200 | 66,000 | 2,300 | -75,900 | -113,000 | -80,500 | -69,100 | -47,600 | -39,100 | -66,400 |
| Long-term debt | US$ in thousands | — | — | — | 430,900 | — | 400,800 | 390,600 | 381,600 | 370,100 | 369,800 | 369,500 | 329,800 | 329,500 | 329,200 | 243,400 | 243,100 | 242,800 | 249,500 | 249,300 | 249,200 |
| Total stockholders’ equity | US$ in thousands | 694,400 | 601,500 | 601,500 | 355,600 | 333,400 | 372,900 | 362,400 | 399,300 | 516,600 | 479,000 | 439,800 | 421,000 | 320,200 | 370,400 | 408,300 | 546,100 | 592,400 | 648,700 | 673,800 | 675,000 |
| Return on total capital | 17.48% | 2.21% | 1.03% | 4.04% | -8.37% | -7.13% | -27.09% | -19.23% | -7.80% | 2.66% | 22.76% | 8.79% | 0.35% | -10.85% | -17.34% | -10.20% | -8.27% | -5.30% | -4.24% | -7.18% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $121,400K ÷ ($—K + $694,400K)
= 17.48%
Century Aluminum Company's return on total capital has shown fluctuations over the years. The ratio was negative for most of the periods between December 2019 and June 2022, indicating that the company was not effectively generating returns on the capital invested. However, there was a notable improvement in the performance in the later periods, with the ratio turning positive from September 2021 onwards.
The return on total capital reached a peak of 22.76% in March 2022, signifying a significant improvement in the company's efficiency in utilizing its capital to generate profits. However, this improvement seemed to be short-lived as the ratio declined sharply in the subsequent periods.
The ratio remained negative for most of the periods between September 2022 and June 2024, indicating ongoing challenges in generating satisfactory returns on invested capital. Nonetheless, the company was able to achieve a positive return on total capital of 17.48% by the end of December 2024, showing signs of recovery and improved capital utilization efficiency.
Overall, the fluctuating trend in Century Aluminum Company's return on total capital reflects the company's varying ability to generate profits relative to the capital employed, indicating the importance of monitoring and analyzing this metric to assess the company's financial performance and efficiency.
Peer comparison
Dec 31, 2024