Albemarle Corp (ALB)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	62,539	1,185,910	3,074,590	997,971	994,853
Revenue	US$ in thousands	5,377,530	9,617,200	7,320,100	3,327,960	3,128,910
Gross profit margin		1.16%	12.33%	42.00%	29.99%	31.80%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $62,539K ÷ $5,377,530K
= 1.16%

The gross profit margin of Albemarle Corp has exhibited significant fluctuations over the past five years. In December 2020, the gross profit margin stood at 31.80%, reflecting a reasonable level of profitability from its core operations. However, by the end of December 2021, there was a notable decline in the margin to 29.99%, suggesting potential challenges in managing costs or maintaining pricing strategies.

In a positive turn of events, the gross profit margin surged to 42.00% by December 2022, indicating improved operational efficiency or pricing strategies that resulted in higher profitability for the company. Nonetheless, this upturn was short-lived, as the margin sharply dropped to 12.33% by December 2023, signaling potential issues impacting the company's ability to generate profits from its primary activities.

The most recent data point, December 31, 2024, shows a substantial decline in the gross profit margin to 1.16%, which may raise concerns about the company's profitability and overall financial health. Such a low margin could indicate challenges in controlling production costs, fierce pricing competition, or other operational inefficiencies that warrant further investigation and strategic adjustments.

Overall, the fluctuations in Albemarle Corp's gross profit margin over the past five years reveal a volatile financial performance, highlighting the importance of continuous monitoring and proactive measures to sustain and enhance profitability in the ever-changing business environment.