Century Aluminum Company (CENX)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.55 | 0.00 | 0.52 | 0.52 | 0.49 | 0.42 | 0.44 | 0.46 | 0.44 | 0.51 | 0.47 | 0.37 | 0.31 | 0.29 | 0.28 | 0.27 | 0.27 | 0.27 | 0.26 | 0.25 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $430,900K ÷ ($430,900K + $355,600K)
= 0.55
The debt-to-capital ratio of Century Aluminum Company has shown fluctuations over the past few quarters. As of December 31, 2023, the ratio stood at 0.55, indicating that debt comprised 55% of the company's capital structure. Prior to that, in September 2023, the ratio dropped sharply to 0.00, suggesting either a significant decrease in debt or an increase in capital.
Looking back to December 31, 2022, the ratio was at 0.49, and it has generally been trending upwards since then, reaching a peak of 0.55 in the latest quarter. This upward trend may indicate a higher reliance on debt to finance the company's operations and investments.
It is important to note that the debt-to-capital ratio is a key metric used to assess a company's financial leverage and risk. A higher ratio implies a greater proportion of debt in the capital structure, which could potentially increase financial risk and interest rate sensitivity. In contrast, a lower ratio signifies a more conservative capital structure with less reliance on debt financing.
Century Aluminum Company's trend in the debt-to-capital ratio should be further analyzed in conjunction with other financial metrics to get a comprehensive understanding of the company's financial health and risk profile.
Peer comparison
Dec 31, 2023