Century Aluminum Company (CENX)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.00 | 1.21 | 0.96 | 0.78 | 0.45 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $694,400K
= 0.00
The debt-to-equity ratio of Century Aluminum Company has shown a fluctuating trend over the last five years. It increased from 0.45 on December 31, 2020, to 1.21 on December 31, 2023, indicating a significant rise in the company's reliance on debt to finance its operations. However, there was a notable decrease in the ratio to 0.00 on December 31, 2024, suggesting a potentially favorable shift towards a debt-free capital structure.
Overall, the increasing trend in the debt-to-equity ratio until 2023 may raise concerns about the company's financial leverage and ability to service its debt obligations. It is essential for investors and stakeholders to monitor the company's capital structure closely to assess its financial health and risk management strategies. The sudden drop to a zero ratio in 2024 may require further investigation to understand the reasons behind such a significant change.
Peer comparison
Dec 31, 2024