Kaiser Aluminum Corporation (KALU)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 11.01% | 10.76% | 4.11% | 6.96% | 15.28% |
| Operating profit margin | 2.90% | 3.10% | -2.15% | -2.55% | 2.98% |
| Pretax margin | 2.10% | 1.82% | -1.11% | -0.92% | 3.31% |
| Net profit margin | 1.55% | 1.53% | -0.86% | -0.71% | 2.46% |
Kaiser Aluminum Corporation's profitability ratios have shown fluctuations over the years based on the provided data.
The Gross Profit Margin, which indicates the percentage of revenue remaining after deducting the cost of goods sold, decreased from 15.28% in 2020 to 4.11% in 2022, before showing a slight recovery to 11.01% in 2024. This indicates challenges in maintaining profitability through efficient cost management.
The Operating Profit Margin, reflecting the company's ability to generate profit from its core operations, turned negative in 2021 and 2022 at -2.55% and -2.15%, respectively, before improving to 2.90% in 2024. This suggests operational difficulties during those years.
The Pretax Margin, showing the percentage of revenue that translates into profit before taxes, was negative in 2021 and 2022 at -0.92% and -1.11%, respectively, before recovering to 2.10% in 2024. This indicates the company faced challenges in generating profits after accounting for operating expenses.
The Net Profit Margin, representing the percentage of revenue that remains as net income after all expenses are deducted, was negative in 2021 and 2022 at -0.71% and -0.86%, respectively, before improving to 1.55% in 2024. This indicates the company's ability to generate profits for shareholders improved in 2024.
Overall, the profitability ratios of Kaiser Aluminum Corporation have shown variability, with improvements in recent years suggesting potential recovery and enhanced financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.79% | 4.23% | -3.22% | -2.76% | 1.88% |
| Return on assets (ROA) | 2.02% | 2.08% | -1.29% | -0.76% | 1.54% |
| Return on total capital | 16.05% | 15.82% | 3.90% | 8.59% | 11.52% |
| Return on equity (ROE) | 7.01% | 7.24% | -4.69% | -2.67% | 3.93% |
Based on the provided data, Kaiser Aluminum Corporation's profitability ratios show fluctuating performance over the years. Here is a breakdown of the key profitability ratios:
1. Operating Return on Assets (Operating ROA):
- December 31, 2020: 1.88%
- December 31, 2021: -2.76%
- December 31, 2022: -3.22%
- December 31, 2023: 4.23%
- December 31, 2024: 3.79%
Analysis: The operating ROA has been inconsistent, with negative values in some years but showing improvement in recent years. This ratio indicates the company's ability to generate operating profits from its assets.
2. Return on Assets (ROA):
- December 31, 2020: 1.54%
- December 31, 2021: -0.76%
- December 31, 2022: -1.29%
- December 31, 2023: 2.08%
- December 31, 2024: 2.02%
Analysis: The ROA also displays variability, with negative values in certain years. However, there has been a positive trend in the most recent years, indicating improved efficiency in generating profits from assets.
3. Return on Total Capital:
- December 31, 2020: 11.52%
- December 31, 2021: 8.59%
- December 31, 2022: 3.90%
- December 31, 2023: 15.82%
- December 31, 2024: 16.05%
Analysis: The return on total capital has experienced fluctuations but shows a positive trajectory in the last two years. This ratio indicates the company's overall profitability in relation to its total capital structure.
4. Return on Equity (ROE):
- December 31, 2020: 3.93%
- December 31, 2021: -2.67%
- December 31, 2022: -4.69%
- December 31, 2023: 7.24%
- December 31, 2024: 7.01%
Analysis: The ROE has also been inconsistent, with negative values in certain years. However, there has been a positive rebound in the most recent years, reflecting the shareholders' return on their investments.
In conclusion, Kaiser Aluminum Corporation's profitability ratios exhibit mixed performance, with some fluctuations but overall improvement in recent years. It is essential for the company to continue monitoring and improving these ratios to ensure sustainable profitability and shareholder value.