Albemarle Corp (ALB)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	5,377,530	9,617,200	7,320,100	3,327,960	3,128,910
Receivables	US$ in thousands	1,278,700	2,309,490	1,590,440	735,816	683,136
Receivables turnover		4.21	4.16	4.60	4.52	4.58

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $5,377,530K ÷ $1,278,700K
= 4.21

The receivables turnover ratio for Albemarle Corp has exhibited relatively stable performance over the past few years. The ratio decreased slightly from 4.58 in December 31, 2020, to 4.52 in December 31, 2021, before increasing to 4.60 in December 31, 2022. However, in the following years, there was a decline in the ratio to 4.16 in December 31, 2023, and a moderate recovery to 4.21 in December 31, 2024.

A receivables turnover ratio of around 4 indicates that, on average, Albemarle Corp collects its accounts receivable approximately four times a year, suggesting a smooth and efficient collection process. The slight fluctuations in the ratio may be attributed to changes in the company's credit policy, customer payment behavior, or overall economic conditions impacting receivables management.

Overall, while the receivables turnover has shown some variability, the company's ability to convert receivables into cash remains relatively consistent, indicating a healthy liquidity position and efficient management of its accounts receivable.