Century Aluminum Company (CENX)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 121,400 | 31,800 | -150,200 | 66,000 | -80,500 |
| Interest expense | US$ in thousands | 6,700 | 35,500 | 29,300 | 30,400 | 31,600 |
| Interest coverage | 18.12 | 0.90 | -5.13 | 2.17 | -2.55 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $121,400K ÷ $6,700K
= 18.12
The interest coverage ratio for Century Aluminum Company has fluctuated significantly over the years as follows:
- As of December 31, 2020, the interest coverage ratio was -2.55, indicating that the company's operating income was insufficient to cover its interest expenses.
- By December 31, 2021, the interest coverage ratio improved to 2.17, suggesting that the company's ability to meet interest payments had strengthened.
- However, by December 31, 2022, the interest coverage ratio plummeted to -5.13, signifying a significant decline in the company's ability to cover its interest costs.
- The ratio slightly recovered by December 31, 2023, reaching 0.90, though it remained below the ideal benchmark of 1. This indicates a continued struggle for Century Aluminum Company to consistently cover its interest obligations.
Finally, there was a substantial improvement in the interest coverage ratio by December 31, 2024, where it soared to 18.12. This remarkable increase suggests a substantial enhancement in the company's ability to cover its interest expenses, reflecting improved financial performance and potentially lower interest obligations.
Peer comparison
Dec 31, 2024