Albemarle Corp (ALB)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,185,910 | 3,074,590 | 997,971 | 994,853 | 1,257,780 |
| Revenue | US$ in thousands | 9,617,200 | 7,320,100 | 3,327,960 | 3,128,910 | 3,589,430 |
| Gross profit margin | 12.33% | 42.00% | 29.99% | 31.80% | 35.04% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,185,910K ÷ $9,617,200K
= 12.33%
Albemarle Corp.'s gross profit margin has demonstrated some fluctuation over the past five years. The margin was notably high at 42.00% in 2022, indicating the company was able to generate significant profits after accounting for the cost of goods sold. However, in 2023, there was a substantial decrease to 12.33%, which suggests a significant decrease in the proportion of revenue retained as gross profit.
The gross profit margins for 2020, 2021, and 2019 were relatively consistent, ranging between 29.99% and 35.04%. This consistency could indicate stable cost management or pricing strategies during those years.
The drastic drop in the gross profit margin from 2022 to 2023 may warrant further investigation into the factors that led to this decline, such as changes in pricing, production costs, or sales volume. Evaluating these factors can provide insights into the company's operational efficiency and profitability trends.
Peer comparison
Dec 31, 2023