Albemarle Corp (ALB)

Working capital 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
Revenue (ttm)	US$ in thousands	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	3,589,427	3,518,562	3,416,563	3,385,385
Total current assets	US$ in thousands	5,216,920	7,125,560	7,454,780	6,657,580	5,186,920	4,296,970	3,350,100	2,336,480	1,993,680	2,078,110	2,151,350	2,009,390	2,206,180	2,227,010	2,292,410	2,155,180	2,225,110	1,969,750	2,036,640	1,987,180
Total current liabilities	US$ in thousands	3,560,460	3,941,610	4,291,510	3,505,370	2,741,020	2,487,950	1,781,760	2,103,340	1,874,340	1,591,040	984,928	953,256	1,801,850	1,612,740	1,420,800	1,192,930	1,409,000	1,421,240	1,399,980	1,278,190
Working capital turnover		5.81	3.10	3.05	2.78	2.99	3.09	2.76	15.55	27.89	6.80	2.77	3.05	7.74	5.28	3.87	3.63	4.40	6.41	5.37	4.77

December 31, 2023 calculation

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

Based on the data provided, Albemarle Corp.'s working capital turnover ratio has shown fluctuations over the past eight quarters. The working capital turnover ratio indicates how efficiently a company uses its working capital to generate sales revenue.

In Q1 2022, the working capital turnover ratio was exceptionally high at 15.55, suggesting that Albemarle Corp. efficiently utilized its working capital to generate sales during that period. However, this ratio dropped significantly in the following quarters of 2022.

From Q2 2022 to Q3 2023, the working capital turnover ratio fluctuated within a narrower range of 2.76 to 3.10. This suggests that the company's efficiency in using its working capital remained relatively stable during this period, with some minor variations in the turnover rate.

The highest ratio recorded in this period was 5.81 in Q4 2023, indicating an improvement in the efficiency of working capital utilization compared to previous quarters. This increase could be attributed to better management of inventory, receivables, and payables, leading to an increase in sales generated per unit of working capital invested.

Overall, while the working capital turnover ratio of Albemarle Corp. has shown fluctuations, it is essential to continue monitoring changes in this ratio to assess the company's ability to effectively utilize its working capital in generating sales revenue.