Albemarle Corp (ALB)

Quick ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash	US$ in thousands	1,192,230	1,664,520	1,830,230	2,055,810	889,900	1,601,670	1,599,740	1,586,730	1,499,140	1,382,800	930,596	463,325	439,272	595,049	823,572	569,859	746,724	702,073	736,696	553,228
Short-term investments	US$ in thousands	17,910	22,747	27,730	44,234	168,928	243,149	194,724	177,503	5,890	12,197	—	—	897,708	902,504	907,080	663,448	35	27	24	20
Receivables	US$ in thousands	1,278,700	1,218,930	1,197,730	1,312,540	2,309,490	1,707,760	1,771,060	1,664,480	1,590,440	1,170,830	1,086,620	729,958	735,816	577,044	513,478	593,522	683,136	577,688	594,583	592,468
Total current liabilities	US$ in thousands	1,966,460	1,910,720	1,958,460	2,050,700	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
Quick ratio		1.27	1.52	1.56	1.66	0.95	0.90	0.83	0.98	1.13	1.03	1.13	0.57	1.11	1.30	2.28	1.92	0.79	0.79	0.94	0.96

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 fluctuations over the period under review. It measures the company's ability to cover its short-term obligations with its most liquid assets. The quick ratio has ranged from a low of 0.57 to a high of 2.28.

The quick ratio was below 1 for most of the period, indicating that the company may have had difficulty meeting its short-term obligations with its quick assets alone. However, the ratio improved significantly to 2.28 as of June 30, 2021, suggesting that Albemarle had ample quick assets to cover its short-term liabilities at that time.

Subsequently, the quick ratio declined but generally remained above 1, indicating a relatively strong liquidity position compared to the earlier periods. It dipped to 0.57 as of March 31, 2022, before recovering and fluctuating around the 1 level for the rest of the period.

Overall, while the quick ratio of Albemarle Corp has shown some volatility, it generally indicated the company's ability to meet its short-term obligations with its quick assets, with the ratio consistently above 1 in more recent periods. Analysts may want to further investigate the reasons behind the fluctuations in the quick ratio to assess the company's overall liquidity position and financial health.