Century Aluminum Company (CENX)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,846,500 | 1,761,000 | 1,747,300 | 1,399,100 | 1,472,000 | 1,583,600 | 1,585,000 | 1,688,700 | 1,569,900 | 1,489,200 | 1,405,400 | 1,363,400 | 1,399,600 | 1,405,400 | 1,524,000 | 1,591,100 | 1,499,700 | 1,491,800 | 1,515,300 | 1,530,400 |
| 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 |
| Financial leverage ratio | 5.19 | 5.28 | 4.69 | 3.86 | 3.69 | 3.07 | 3.31 | 3.84 | 3.73 | 4.65 | 3.79 | 3.34 | 2.56 | 2.37 | 2.35 | 2.36 | 2.22 | 2.16 | 2.14 | 2.10 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,846,500K ÷ $355,600K
= 5.19
The financial leverage ratio of Century Aluminum Company has shown some fluctuation over the past few quarters. The ratio has increased from 2.10 at the end of March 2019 to 5.19 at the end of December 2023, indicating a significant rise in leverage during this period.
A high financial leverage ratio suggests that a company is relying more on debt to finance its operations and growth, which can increase the risk of financial distress especially during economic downturns. On the other hand, a low ratio indicates a conservative capital structure with less reliance on debt financing.
The upward trend in Century Aluminum's financial leverage ratio implies that the company has been taking on more debt relative to its equity over the recent quarters, potentially to fund expansion or other investments. It is essential for investors and stakeholders to monitor this trend closely to assess the company's ability to manage its debt levels and financial risks effectively.
Peer comparison
Dec 31, 2023