Albemarle Corp (ALB)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	62,539	-779,726	-620,758	-51,693	1,185,909	2,891,281	3,880,157	3,902,094	3,074,584	2,309,858	1,515,321	1,183,314	997,971	1,026,797	1,031,580	1,016,522	994,853	1,067,944	1,123,755	1,216,310
Revenue (ttm)	US$ in thousands	5,377,520	6,501,970	7,457,880	8,397,690	9,617,200	9,882,020	9,663,220	8,772,620	7,320,100	5,593,324	4,332,090	3,626,396	3,327,957	3,312,900	3,229,202	3,219,355	3,128,909	3,242,326	3,375,205	3,496,208
Gross profit margin		1.16%	-11.99%	-8.32%	-0.62%	12.33%	29.26%	40.15%	44.48%	42.00%	41.30%	34.98%	32.63%	29.99%	30.99%	31.95%	31.58%	31.80%	32.94%	33.29%	34.79%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $62,539K ÷ $5,377,520K
= 1.16%

The gross profit margin of Albemarle Corp has exhibited fluctuations over the past few years. It started at around 34.79% in March 2020, gradually declining to as low as 12.33% by the end of December 2023. Subsequently, the margin turned negative in the first quarter of 2024, indicating that the company's cost of goods sold exceeded its revenue from sales during that period.

However, there was a notable recovery in the following quarters, with the gross profit margin improving to 1.16% by the end of December 2024. This improvement suggests that Albemarle Corp was able to enhance its efficiency in managing production costs relative to its revenue generation.

The significant fluctuations in the gross profit margin highlight the challenges and changes that Albemarle Corp has experienced in its cost structure and pricing strategies over the analyzed period. Investors and stakeholders may want to closely monitor future financial reports to assess the company's ability to maintain a healthy and sustainable gross profit margin in the long term.