Albemarle Corp (ALB)
Payables 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 |
| Payables | US$ in thousands | — | 1,533,620 | 600,487 | 483,221 | 574,138 |
| Payables turnover | — | 2.77 | 3.88 | 4.42 | 4.06 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,431,290K ÷ $—K
= —
Albemarle Corp.'s payables turnover ratio has fluctuated over the past five years. In 2023, the payables turnover ratio increased to 4.04 from 2.07 in 2022, indicating that Albemarle Corp. paid its suppliers more frequently in 2023. This could suggest improved liquidity management or potentially negotiating more favorable payment terms with suppliers.
Comparing to the prior years, the payables turnover ratio was 3.60 in 2021, 4.42 in 2020, and 4.06 in 2019. The increase in 2023 may indicate a similar or enhanced focus on efficient payables management compared to the earlier years.
Overall, a higher payables turnover ratio signifies that the company is settling its accounts payable more rapidly. It is important to assess this ratio in conjunction with other liquidity and efficiency metrics to obtain a comprehensive understanding of Albemarle Corp.'s financial performance and operational effectiveness.
Peer comparison
Dec 31, 2023