Albemarle Corp (ALB)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.47 | 1.81 | 1.74 | 1.90 | 1.89 | 1.73 | 1.88 | 1.11 | 1.06 | 1.31 | 2.18 | 2.11 | 1.22 | 1.38 | 1.61 | 1.81 | 1.58 | 1.39 | 1.45 | 1.55 |
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 exhibited some fluctuations over the past eight quarters, ranging from a low of 1.11 in Q1 2022 to a high of 1.90 in Q1 2023. The company's current ratio indicates its ability to cover short-term liabilities with existing assets.
In general, a current ratio above 1 suggests that the company has more current assets than current liabilities, which is considered favorable. However, it is important to note that a very high current ratio may indicate inefficiency in asset utilization.
The recent trend shows an increase from Q2 2022 to Q3 2023, with the ratio peaking in Q1 2023. This indicates improved liquidity and potential strength in the company's ability to meet its short-term obligations.
Overall, Albemarle Corp.'s current ratio appears to be within a reasonable range over the observation period, reflecting a healthy liquidity position. However, it is important for the company to maintain a balance between current assets and liabilities to ensure ongoing financial stability.
Peer comparison
Dec 31, 2023