Albemarle Corp (ALB)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	8,431,290	4,245,520	2,329,990	2,134,060	2,331,650
Inventory	US$ in thousands	2,161,290	2,076,030	798,620	750,237	768,984
Inventory turnover		3.90	2.05	2.92	2.84	3.03

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $8,431,290K ÷ $2,161,290K
= 3.90

The inventory turnover ratio for Albemarle Corp. has been fluctuating over the past five years, ranging from a low of 2.05 in 2022 to a high of 3.90 in 2023. This ratio measures the efficiency with which the company manages its inventory by indicating how many times during a period inventory is sold and replaced.

A higher inventory turnover indicates that Albemarle Corp. is selling its inventory more frequently, which could be a positive sign of efficient inventory management. The significant increase in inventory turnover from 2.05 in 2022 to 3.90 in 2023 suggests that the company has improved its inventory management practices during that period.

However, it is important to note that the inventory turnover ratio should be analyzed in conjunction with other financial metrics to get a more comprehensive view of the company's performance and financial health. Additionally, benchmarking against industry peers can provide further insights into how Albemarle Corp. fares in terms of inventory management efficiency.