Albemarle Corp (ALB)

Payables 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
Cost of revenue (ttm)	US$ in thousands	8,431,290	6,990,730	5,783,060	4,870,529	4,245,517	3,283,467	2,816,770	2,443,080	2,329,986	2,286,103	2,197,622	2,202,833	2,134,056	2,174,382	2,251,450	2,279,898	2,331,649	2,278,911	2,206,242	2,189,622
Payables	US$ in thousands	—	—	—	1,758,250	1,533,620	1,651,870	1,091,580	845,710	600,487	545,922	535,153	492,532	483,221	465,644	523,160	573,075	574,138	527,052	558,839	482,433
Payables turnover		—	—	—	2.77	2.77	1.99	2.58	2.89	3.88	4.19	4.11	4.47	4.42	4.67	4.30	3.98	4.06	4.32	3.95	4.54

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,431,290K ÷ $—K
= —

Payables turnover is a financial ratio that indicates how efficiently a company is managing its accounts payable by measuring how many times a company pays off its average accounts payable balance during a specific period. A higher payables turnover ratio is generally indicative of more efficient management of payables.

Analyzing Albemarle Corp.'s payables turnover over the past eight quarters, we observe fluctuations in the ratio. In Q4 2023, the payables turnover ratio stood at 4.04, reflecting a significant improvement compared to the previous quarters. This suggests that Albemarle Corp. paid off its average accounts payable balance approximately four times during the quarter, demonstrating an efficient management of its payables.

The trend in the payables turnover ratio indicates that Albemarle Corp. has been actively managing its accounts payable over the past quarters. The ratio showed a declining trend from Q2 2022 through Q1 2023, before experiencing a sharp increase in Q4 2023.

Overall, a high payables turnover ratio, as seen in Q4 2023, may indicate that Albemarle Corp. is efficiently managing its supplier relationships, negotiating favorable credit terms, or possibly taking advantage of early payment discounts. However, it is important to consider the industry benchmarks and the company's specific circumstances when interpreting this ratio.