Albemarle Corp (ALB)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,617,200 | 7,320,100 | 3,327,960 | 3,128,910 | 3,589,430 |
| Property, plant and equipment | US$ in thousands | 9,382,770 | 6,963,000 | 5,909,620 | 5,354,620 | 4,909,470 |
| Fixed asset turnover | 1.02 | 1.05 | 0.56 | 0.58 | 0.73 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,617,200K ÷ $9,382,770K
= 1.02
The fixed asset turnover ratio measures a company's efficiency in generating revenue from its investments in fixed assets. For Albemarle Corp., the fixed asset turnover has shown fluctuations over the past five years. In 2023, the ratio stands at 1.01, indicating that the company generated $1.01 in revenue for every $1 invested in fixed assets. This is a slight decrease from the previous year's ratio of 1.05.
In 2021, Albemarle's fixed asset turnover was 0.56, reflecting a significant decline in efficiency compared to 2020 when the ratio was 0.58. This indicates that the company was able to generate a lower amount of revenue per dollar of fixed assets during that period. The trend continued to improve in 2022 with a ratio of 0.73, showing some recovery in asset utilization.
Overall, the fluctuation in Albemarle's fixed asset turnover ratio suggests varying levels of efficiency in utilizing its fixed assets to generate revenue. Further analysis of the company's operational performance and investment strategies may provide insight into the factors driving these fluctuations and their implications for the company's long-term financial health.
Peer comparison
Dec 31, 2023