Century Aluminum Company (CENX)
Return on total capital
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | -127,100 | -123,700 | -79,900 |
| 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 | 249,000 | 248,900 | 248,800 |
| Total stockholders’ equity | US$ in thousands | 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 | 689,900 | 709,400 | 728,100 |
| Return on total capital | 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% | -13.54% | -12.91% | -8.18% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $31,800K ÷ ($430,900K + $355,600K)
= 4.04%
The return on total capital for Century Aluminum Company has shown fluctuating performance over the past few quarters.
In the most recent quarter, as of December 31, 2023, the return on total capital was 4.04%, indicating a moderate return on the total capital employed by the company. This may suggest that the company is effectively utilizing its capital to generate returns for its stakeholders.
However, in the prior quarter, as of September 30, 2023, the return on total capital was notably negative at -8.37%, signifying a poor performance in capital utilization during that period. This negative return could indicate inefficiencies in the company's operations or challenges faced in generating profits relative to the capital employed.
Looking back further, the return on total capital fluctuated between positive and negative figures in earlier quarters. Notably, in the first quarter of 2023, the return on total capital was -27.09%, reflecting a substantial decline in capital efficiency and profitability during that period.
Overall, the trend in return on total capital for Century Aluminum Company indicates variability in capital utilization efficiency and profitability, suggesting a need for the company to focus on operational improvements and strategic decisions to enhance its overall financial performance.
Peer comparison
Dec 31, 2023