Albemarle Corp (ALB)

Payables 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
Payables	US$ in thousands	—	—	1,533,620	600,487	483,221
Payables turnover		—	—	2.77	3.88	4.42

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $5,314,990K ÷ $—K
= —

The payables turnover ratio for Albemarle Corp has shown a declining trend over the years, indicating the company's ability to efficiently manage its accounts payable has weakened.

In 2020, the payables turnover ratio was 4.42, which means the company converted its accounts payable into cash approximately 4.42 times during the year. However, by 2022, this ratio decreased to 2.77, suggesting the company took longer to pay off its suppliers.

It is concerning that there is no data for 2023 and 2024, as this lack of information makes it difficult to assess whether the trend has continued or improved in the following years.

Overall, a decreasing payables turnover ratio may signify potential issues in cash flow management, supplier relationships, or overall financial health that warrant further investigation and monitoring.