Albemarle Corp (ALB)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	9,617,200	7,320,100	3,327,960	3,128,910	3,589,430
Total current assets	US$ in thousands	5,216,920	5,186,920	1,993,680	2,206,180	2,225,110
Total current liabilities	US$ in thousands	3,560,460	2,741,020	1,874,340	1,801,850	1,409,000
Working capital turnover		5.81	2.99	27.89	7.74	4.40

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,617,200K ÷ ($5,216,920K – $3,560,460K)
= 5.81

Albemarle Corp.'s working capital turnover ratio has fluctuated over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

In 2023, Albemarle Corp.'s working capital turnover ratio was 5.81, a significant improvement compared to the previous year, which suggests the company was able to generate more sales revenue for each dollar of working capital invested.

The ratio was particularly high in 2021 at 24.90, indicating an exceptional level of efficiency in utilizing its working capital to drive sales. This could be attributed to effective management of current assets and liabilities during that period.

The ratios for 2020 and 2019 were also relatively healthy at 7.74 and 4.40, respectively, demonstrating a consistent ability to efficiently convert working capital into sales revenue over those years.

Overall, the varying trends in Albemarle Corp.'s working capital turnover ratio reflect changes in the company's efficiency in managing its working capital and generating sales revenue over the years.