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.
Peer comparison
Dec 31, 2023