Century Aluminum Company (CENX)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,846,500 | 1,472,000 | 1,569,900 | 1,399,600 | 1,499,700 |
| Total stockholders’ equity | US$ in thousands | 355,600 | 399,300 | 421,000 | 546,100 | 675,000 |
| Financial leverage ratio | 5.19 | 3.69 | 3.73 | 2.56 | 2.22 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,846,500K ÷ $355,600K
= 5.19
Based on the data provided, Century Aluminum Company's financial leverage ratio has exhibited an upward trend over the past five years, increasing from 2.22 in 2019 to 5.19 in 2023. This suggests that the company has been increasingly relying on debt to finance its operations and growth.
A financial leverage ratio of 5.19 in 2023 indicates that the company has $5.19 of debt for every $1 of equity. This level of leverage may signal heightened financial risk, as high debt levels can make the company more vulnerable to economic downturns or fluctuations in interest rates.
It is important for investors and stakeholders to closely monitor Century Aluminum Company's financial leverage ratio and overall debt levels to assess the company's ability to meet its debt obligations and sustain its financial health in the long term.
Peer comparison
Dec 31, 2023