Century Aluminum Company (CENX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,939,400 | 1,846,500 | 1,472,000 | 1,569,900 | 1,399,600 |
| Total stockholders’ equity | US$ in thousands | 694,400 | 355,600 | 399,300 | 421,000 | 546,100 |
| Financial leverage ratio | 2.79 | 5.19 | 3.69 | 3.73 | 2.56 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,939,400K ÷ $694,400K
= 2.79
The financial leverage ratio of Century Aluminum Company has shown fluctuations over the years, indicating changes in the company's debt levels relative to its equity.
As of December 31, 2020, the financial leverage ratio was 2.56, suggesting that the company had a moderate level of debt compared to its equity.
By December 31, 2021, the ratio had increased to 3.73, indicating a significant rise in the company's debt relative to its equity, which may signal increased financial leverage and potential risks associated with higher debt levels.
For December 31, 2022 and 2023, the financial leverage ratio remained relatively stable at 3.69 and 5.19, respectively. The ratio of 5.19 in 2023 indicates a substantial increase in financial leverage, which could imply higher financial risk and vulnerability to market fluctuations.
However, by December 31, 2024, the financial leverage ratio decreased to 2.79, suggesting a reduction in the company's debt levels relative to equity. This decrease may indicate a healthier financial position with lower financial risk compared to the previous year.
Overall, Century Aluminum Company's financial leverage ratio has shown significant variability, with peaks and troughs in debt-to-equity levels, indicating shifts in the company's capital structure and financial risk profile over the years. Investors and stakeholders should closely monitor these changes to assess the company's financial health and stability.
Peer comparison
Dec 31, 2024