Albemarle Corp (ALB)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	1,192,230	889,900	1,499,140	439,272	746,724
Short-term investments	US$ in thousands	17,910	168,928	5,890	897,708	35
Total current liabilities	US$ in thousands	1,966,460	3,560,460	2,741,020	1,874,340	1,801,850
Cash ratio		0.62	0.30	0.55	0.71	0.41

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,192,230K + $17,910K) ÷ $1,966,460K
= 0.62

The cash ratio for Albemarle Corp has shown some fluctuations over the years based on the provided data. As of December 31, 2020, the cash ratio was 0.41, indicating that the company had $0.41 in cash and cash equivalents for every dollar of current liabilities.

By December 31, 2021, the cash ratio had improved to 0.71, suggesting that the company had strengthened its ability to cover its short-term obligations with cash on hand. However, by the end of 2022, the cash ratio decreased to 0.55, reflecting a slight decline in the company's liquidity position compared to the previous year.

Subsequently, by December 31, 2023, the cash ratio dropped further to 0.30, signaling a significant reduction in the company's liquidity relative to its short-term liabilities. However, there was a notable improvement by the end of 2024, with the cash ratio increasing to 0.62, indicating that Albemarle Corp had enhanced its liquidity position compared to the prior year.

Overall, the trend in Albemarle Corp's cash ratio over the years shows some fluctuations, with periods of improvement and decline in liquidity levels. It is essential for investors and stakeholders to monitor these changes to assess the company's ability to meet its short-term obligations using its available cash resources.