Albemarle Corp (ALB)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	5,377,520	6,501,970	7,457,880	8,397,690	9,617,200	9,882,020	9,663,220	8,772,620	7,320,100	5,593,324	4,332,090	3,626,396	3,327,957	3,312,900	3,229,202	3,219,355	3,128,909	3,242,326	3,375,205	3,496,208
Property, plant and equipment	US$ in thousands	9,214,430	9,258,450	9,837,030	9,756,040	9,495,200	8,308,620	7,854,540	7,353,490	6,963,000	6,425,110	6,208,020	6,028,650	5,909,620	5,655,480	5,510,600	5,390,330	5,354,620	5,242,720	5,136,360	5,025,970
Fixed asset turnover		0.58	0.70	0.76	0.86	1.01	1.19	1.23	1.19	1.05	0.87	0.70	0.60	0.56	0.59	0.59	0.60	0.58	0.62	0.66	0.70

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,377,520K ÷ $9,214,430K
= 0.58

Albemarle Corp's fixed asset turnover ratio has fluctuated over the period from March 31, 2020, to December 31, 2024. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.

The trend of Albemarle Corp's fixed asset turnover ratio shows a general decline from 0.70 in March 2020 to 0.58 in December 2024. This decrease indicates a potential inefficiency in generating sales from its fixed assets during this period.

However, there are some positive signs in the more recent data points. The fixed asset turnover ratio showed improvement in the most current periods, reaching 1.01 in December 31, 2023, and then dropping slightly to 0.86 in March 31, 2024.

The significant increase in the fixed asset turnover ratio from September 30, 2022 to March 31, 2023, from 0.87 to 1.19, represents a notable improvement in the company's efficiency in utilizing its fixed assets to generate sales.

Overall, it is important for Albemarle Corp to continue to monitor and enhance its fixed asset turnover ratio to ensure optimal utilization of its fixed assets and improve its overall operational efficiency.