Albemarle Corp (ALB)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	889,900	1,499,140	439,272	746,724	613,110
Short-term investments	US$ in thousands	168,928	5,890	897,708	35	32
Receivables	US$ in thousands	2,309,490	1,590,440	735,816	683,136	804,507
Total current liabilities	US$ in thousands	3,560,460	2,741,020	1,874,340	1,801,850	1,409,000
Quick ratio		0.95	1.13	1.11	0.79	1.01

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($889,900K + $168,928K + $2,309,490K) ÷ $3,560,460K
= 0.95

The quick ratio of Albemarle Corp. has fluctuated over the past five years, indicating varying levels of liquidity. The quick ratio measures the company's ability to meet short-term obligations using its most liquid assets.

In 2023, the quick ratio was 0.86, indicating that the company had $0.86 in quick assets for every $1 of current liabilities. This suggests a relatively lower liquidity position compared to the previous year. The decrease in the quick ratio from 2022 to 2023 may raise concerns about the company's ability to cover its short-term liabilities with its liquid assets.

In 2022, the quick ratio was 1.13, showing an improvement in liquidity compared to 2021. This indicates that the company had $1.13 in quick assets for every $1 of current liabilities, reflecting a more secure liquidity position.

The quick ratio was 0.64 in 2021, signaling a significant decrease in liquidity compared to 2020. This suggests that the company may have had difficulties meeting its short-term obligations using its quick assets during that period.

In 2020, the quick ratio was 0.81, indicating a slight improvement in liquidity compared to 2019. However, the ratio was still below 1, indicating that the company may have had some challenges in meeting its short-term obligations using only its most liquid assets.

In 2019, the quick ratio stood at 1.03, reflecting a relatively strong liquidity position where the company had $1.03 in quick assets for every $1 of current liabilities.

Overall, the fluctuating trend in Albemarle Corp.'s quick ratio suggests variability in the company's ability to swiftly cover its short-term obligations with its liquid assets. Investors and creditors may want to closely monitor these changes to assess the company's short-term financial health and liquidity risk.