Albemarle Corp (ALB)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.47 | 1.89 | 1.06 | 1.22 | 1.58 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,216,920K ÷ $3,560,460K
= 1.47
The current ratio of Albemarle Corp. has fluctuated over the past five years, ranging from 1.07 in 2021 to 1.89 in 2022. In 2023, the current ratio was 1.47, indicating a decrease from the previous year.
A current ratio above 1 suggests that the company has more current assets than current liabilities, which is generally considered favorable for liquidity and short-term financial health. However, the downward trend in the current ratio since 2022 may raise concerns about the company's ability to meet its short-term obligations in 2023. Further analysis of the components of current assets and liabilities would be needed to better understand the changes in the current ratio and its implications for Albemarle Corp.'s financial position.
Peer comparison
Dec 31, 2023