Albemarle Corp (ALB)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	3,589,427	3,518,562	3,416,563	3,385,385
Property, plant and equipment	US$ in thousands	9,382,770	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	4,909,470	3,524,040	3,390,620	3,170,190
Fixed asset turnover		1.02	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	0.73	1.00	1.01	1.07

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $9,617,200K ÷ $9,382,770K
= 1.02

Albemarle Corp.'s fixed asset turnover has shown variability over the past eight quarters, ranging from a low of 0.60 in Q1 2022 to a high of 1.23 in Q2 2023. The fixed asset turnover ratio measures how efficiently the company is using its fixed assets to generate sales revenue, with higher ratios indicating better utilization.

Overall, there appears to have been an improvement in fixed asset turnover since Q1 2022, with the ratio consistently increasing from 0.60 to 1.23 by Q2 2023. This trend suggests that Albemarle Corp. has been more effective in generating sales revenue relative to its investment in fixed assets during this period.

It is important for investors and analysts to continue monitoring this ratio to assess the company's operational efficiency and asset utilization in the future.