Albemarle Corp (ALB)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	5,314,990	8,431,290	4,245,520	2,329,990	2,134,060
Inventory	US$ in thousands	1,502,530	2,161,290	2,076,030	798,620	750,237
Inventory turnover		3.54	3.90	2.05	2.92	2.84

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $5,314,990K ÷ $1,502,530K
= 3.54

Based on the provided data, the inventory turnover for Albemarle Corp has experienced fluctuations over the past five years.

- In December 31, 2020, the inventory turnover was 2.84 times, implying that the company's inventory was turned over approximately 2.84 times during that year.
- The inventory turnover increased slightly to 2.92 times by December 31, 2021, indicating a slightly more efficient management of inventory.
- However, there was a noticeable decrease in the inventory turnover to 2.05 times by December 31, 2022, which suggests a slowdown in the rate at which inventory is being sold or utilized.
- The inventory turnover then significantly improved to 3.90 times by December 31, 2023, indicating a substantial increase in inventory efficiency.
- By December 31, 2024, the inventory turnover slightly decreased to 3.54 times but still remained at a relatively high level compared to the previous years.

Overall, the trend in inventory turnover for Albemarle Corp shows some variability, with fluctuations in efficiency in managing its inventory levels. The company demonstrated improvements in inventory turnover in certain years, which could indicate better inventory management practices. However, the fluctuations in the ratios should be further analyzed to understand the underlying factors driving these changes.