Albemarle Corp (ALB)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 251,881 | 2,470,060 | 798,434 | 505,812 | 666,123 |
| Revenue | US$ in thousands | 9,617,200 | 7,320,100 | 3,327,960 | 3,128,910 | 3,589,430 |
| Operating profit margin | 2.62% | 33.74% | 23.99% | 16.17% | 18.56% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $251,881K ÷ $9,617,200K
= 2.62%
The operating profit margin of Albemarle Corp. has shown significant fluctuations over the past five years. In 2019, the operating profit margin was relatively high at 18.56%, indicating efficient cost management and strong operational performance. However, in the subsequent years, the operating profit margin experienced a decline, dropping to 16.17% in 2020 and further down to 15.10% in 2021.
The sharp decrease in operating profit margin from 2019 to 2021 suggests potential challenges in controlling operating expenses relative to revenue generation during this period. It may indicate reduced profitability or increased costs impacting the company's bottom line.
The most recent data for 2022 and 2023 shows a significant recovery in the operating profit margin, albeit still relatively low compared to the 2019 levels. The operating profit margin improved from 15.10% in 2021 to 33.86% in 2022, followed by a slight decline to 1.88% in 2023.
The fluctuating trend in the operating profit margin of Albemarle Corp. indicates a need for further analysis to understand the factors driving these changes and to assess the company's overall operational efficiency and profitability in more detail.
Peer comparison
Dec 31, 2023