Albemarle Corp (ALB)

Receivables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	5,377,520	6,501,970	7,457,880	8,397,690	9,617,200	9,882,020	9,663,220	8,772,620	7,320,100	5,593,324	4,332,090	3,626,396	3,327,957	3,312,900	3,229,202	3,219,355	3,128,909	3,242,326	3,375,205	3,496,208
Receivables	US$ in thousands	1,278,700	1,218,930	1,197,730	1,312,540	2,309,490	1,707,760	1,771,060	1,664,480	1,590,440	1,170,830	1,086,620	729,958	735,816	577,044	513,478	593,522	683,136	577,688	594,583	592,468
Receivables turnover		4.21	5.33	6.23	6.40	4.16	5.79	5.46	5.27	4.60	4.78	3.99	4.97	4.52	5.74	6.29	5.42	4.58	5.61	5.68	5.90

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $5,377,520K ÷ $1,278,700K
= 4.21

The receivables turnover ratio measures how efficiently a company is managing its receivables by indicating how many times during a period the company collects its average accounts receivable balance. For Albemarle Corp, the receivables turnover ratio has shown some fluctuations over the years.

Initially, the ratio was relatively stable around 5.6 to 5.9 in 2020 and early 2021. However, there was a noticeable decrease in the ratio towards the end of 2021 and into 2022, dropping to around 4.5 to 4.0, indicating a potential slowdown in the collection of receivables during this period.

Subsequently, the ratio experienced some recovery in mid-2023, increasing to about 5.5 to 6.4, which suggests an improvement in the company's efficiency in collecting receivables. However, by the end of 2024, the ratio dipped again to around 4.2 to 5.3.

Overall, while the receivables turnover ratio for Albemarle Corp has shown some variability, it is essential for the company to closely monitor and manage its accounts receivable collection process to ensure efficient cash flow management and overall financial health.