Albemarle Corp (ALB)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	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
Receivables	US$ in thousands	1,278,700	2,309,490	1,590,440	735,816	683,136
Total current liabilities	US$ in thousands	1,966,460	3,560,460	2,741,020	1,874,340	1,801,850
Quick ratio		1.27	0.95	1.13	1.11	0.79

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,192,230K + $17,910K + $1,278,700K) ÷ $1,966,460K
= 1.27

The quick ratio of Albemarle Corp has shown varying trends over the past five years. As of December 31, 2020, the quick ratio stood at 0.79, indicating a relatively lower liquidity position. However, there has been a noticeable improvement in liquidity management as the quick ratio increased to 1.11 by December 31, 2021, and further to 1.13 by December 31, 2022. This upward trend suggests the company's ability to meet its short-term obligations using its most liquid assets has strengthened.

By December 31, 2023, the quick ratio decreased slightly to 0.95, potentially signaling a minor liquidity strain. However, this ratio still remains above 1, indicating that Albemarle Corp can cover its current liabilities with its quick assets though not as comfortably as in the previous years.

Finally, as of December 31, 2024, the quick ratio improved significantly to 1.27, demonstrating a healthier liquidity position compared to the preceding year. This rise reflects the company's enhanced capacity to settle short-term debts promptly using its liquid assets. Overall, while there have been fluctuations in the quick ratio, the upward trajectory indicates an overall positive trend in Albemarle Corp's liquidity management over the five-year period.