Century Aluminum Company (CENX)
Debt-to-equity 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-equity ratio | 1.21 | 0.00 | 1.07 | 1.08 | 0.96 | 0.72 | 0.77 | 0.84 | 0.78 | 1.03 | 0.89 | 0.60 | 0.45 | 0.41 | 0.38 | 0.37 | 0.37 | 0.36 | 0.35 | 0.34 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $430,900K ÷ $355,600K
= 1.21
The debt-to-equity ratio of Century Aluminum Company has shown fluctuations over the past few quarters. As of December 31, 2023, the ratio stands at 1.21, indicating that the company has a higher level of debt relative to its equity. This ratio has increased significantly from the previous quarter when it was reported at 0.00, possibly due to changes in the company's financing structure or investment decisions.
Looking at the trend over the last few quarters, we observe that the debt-to-equity ratio has generally been increasing since the beginning of 2022. This suggests that Century Aluminum Company has been relying more on debt financing compared to equity financing during this period. It is worth noting that the ratio peaked at 1.21 in December 2023, the highest level observed in the provided data.
Analyzing the debt-to-equity ratio can provide insights into the company's financial leverage and risk profile. A higher ratio indicates higher financial risk, as the company is more leveraged, which could lead to increased interest expenses and potential difficulties in servicing the debt. Conversely, a lower ratio implies a lower risk of financial distress but may also indicate underutilization of debt in the capital structure.
Further analysis of the underlying reasons for the changes in the debt-to-equity ratio, along with considerations of industry norms and future business prospects, would be necessary to fully assess the implications of the company's leverage position.
Peer comparison
Dec 31, 2023