Albemarle Corp (ALB)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	5,377,530	9,617,200	7,320,100	3,327,960	3,128,910
Property, plant and equipment	US$ in thousands	9,214,430	9,495,200	6,963,000	5,909,620	5,354,620
Fixed asset turnover		0.58	1.01	1.05	0.56	0.58

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,377,530K ÷ $9,214,430K
= 0.58

The fixed asset turnover ratio for Albemarle Corp has shown fluctuation over the past five years. In 2020, the ratio was 0.58, indicating that the company generated $0.58 in revenue for every dollar invested in fixed assets. The ratio decreased slightly to 0.56 in 2021, suggesting a slight decline in efficiency in utilizing fixed assets to generate sales.

However, there was a significant improvement in 2022 and 2023, with the fixed asset turnover ratio increasing to 1.05 and 1.01 respectively. This reflects a positive trend of generating more revenue from fixed assets, indicating improved efficiency in asset utilization during these years.

Unfortunately, the ratio dropped back to 0.58 in 2024, reaching the same level as in 2020. This decrease may raise concerns about the company's ability to effectively utilize its fixed assets to generate revenue.

Overall, while there have been fluctuations in Albemarle Corp's fixed asset turnover ratio over the five-year period, the company has demonstrated both improvements and declines in efficiency in utilizing its fixed assets to generate sales. It would be important for the company to focus on maintaining or improving this ratio to ensure optimal utilization of its fixed assets going forward.