Kaiser Aluminum Corporation (KALU)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 9.00% | 4.53% | 6.46% | 14.95% | 20.28% |
| Operating profit margin | 3.14% | 0.12% | 2.54% | 7.15% | 8.53% |
| Pretax margin | 1.84% | -1.12% | -0.95% | 3.42% | 5.46% |
| Net profit margin | 1.55% | -0.87% | -0.73% | 2.54% | 4.21% |
Kaiser Aluminum Corp's profitability ratios have shown some fluctuations over the past five years. The gross profit margin has ranged from 7.23% to 19.74%, with a significant drop in 2022 followed by an increase in 2023. This suggests variability in the company's ability to generate profit from its core operations.
The operating profit margin has also fluctuated, ranging from 0.78% to 9.97%. The lowest margin in 2022 indicates challenges in managing operating expenses and generating profits before interest and taxes. However, the margin improved in 2023, albeit still relatively low compared to previous years.
The trend in the pretax margin reflects wider fluctuations, swinging from negative figures in 2021 and 2022 to positive percentages in 2020 and 2019. This variability suggests that Kaiser Aluminum Corp has faced challenges in generating profits before accounting for taxes, possibly due to changes in revenue or cost structures.
Similarly, the net profit margin has shown inconsistency, with negative margins in 2021 and 2022 before turning positive in 2023. The positive net profit margins in 2019 and 2020 indicate more successful management of taxes and other expenses to generate bottom-line profits.
Overall, the analysis of Kaiser Aluminum Corp's profitability ratios highlights the company's fluctuating performance in generating profits at different stages over the past five years. Monitoring these ratios can provide insights into the company's operational efficiency, cost management, and overall financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.23% | 0.17% | 2.66% | 4.35% | 8.24% |
| Return on assets (ROA) | 2.08% | -1.29% | -0.76% | 1.54% | 4.06% |
| Return on total capital | 6.10% | 0.62% | 1.48% | 5.07% | 8.56% |
| Return on equity (ROE) | 7.24% | -4.69% | -2.67% | 3.93% | 8.45% |
Kaiser Aluminum Corp's profitability ratios have shown some fluctuations over the past five years.
The Operating ROA, which reflects how efficiently the company generates operating profit from its assets, has been volatile, with a significant decrease in 2022 followed by a slight recovery in 2023.
The ROA, which indicates the company's overall profitability in relation to its total assets, has been negative in 2022 and 2021, reflecting challenges in generating profits relative to the assets employed. The positive ROA in other years suggests a better utilization of assets to generate profits.
The Return on Total Capital has also experienced fluctuations, reaching a peak in 2019 and declining in the subsequent years. This ratio evaluates the efficiency in generating returns from both equity and debt capital invested in the business.
The ROE, which assesses the profitability from the perspective of the company's shareholders, has been negative in 2022 and 2021, indicating that the company struggled to generate profits for its equity holders during those years.
Overall, Kaiser Aluminum Corp's profitability ratios demonstrate varying performance levels, with some years showing positive profitability metrics and others reflecting challenges in generating returns for shareholders and efficiently utilizing assets. Continued monitoring and strategic adjustments may be necessary to improve profitability levels in the future.