Albemarle Corp (ALB)

Quick 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
Cash	US$ in thousands	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	613,110	317,823	398,183	465,274
Short-term investments	US$ in thousands	168,928	243,149	194,724	177,503	5,890	12,197	—	—	897,708	902,504	907,080	663,448	35	27	24	20	32	29	30	30
Receivables	US$ in thousands	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	804,507	723,593	730,015	660,561
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
Quick ratio		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	1.01	0.73	0.81	0.88

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 displayed some fluctuations over the past eight quarters. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, declined from 1.13 in Q4 2022 to 0.86 in Q4 2023. This suggests a decrease in the company's ability to cover its current liabilities with its liquid assets in the most recent quarter.

Although the ratio has fluctuated, it generally remained above 1, indicating that Albemarle Corp. has had sufficient liquid assets to cover its short-term liabilities in most quarters. However, the downward trend in the quick ratio over the past year may raise concerns about the company's liquidity position and its ability to meet its short-term financial obligations.

It is essential for stakeholders to closely monitor Albemarle Corp.'s liquidity management and financial health to ensure that the company can continue to meet its short-term obligations and sustain its operations effectively.