Albemarle Corp (ALB)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	-1,776,540	251,881	2,470,060	798,434	505,812
Revenue	US$ in thousands	5,377,530	9,617,200	7,320,100	3,327,960	3,128,910
Operating profit margin		-33.04%	2.62%	33.74%	23.99%	16.17%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $-1,776,540K ÷ $5,377,530K
= -33.04%

Albemarle Corp's operating profit margin has exhibited significant fluctuations in recent years. As of December 31, 2020, the operating profit margin stood at 16.17%, indicating that the company was generating approximately 16.17 cents of operating profit for every dollar of sales.

By December 31, 2021, the operating profit margin had increased significantly to 23.99%, showcasing an improvement in operational efficiency and profitability. This suggests that Albemarle Corp was able to generate higher profits relative to its sales during this period.

The following year, by December 31, 2022, the operating profit margin surged to 33.74%, reaching its peak in the given dataset. This sharp increase signals a robust performance in terms of managing operating expenses and maximizing operating income.

However, by December 31, 2023, the operating profit margin declined notably to 2.62%, indicating a significant decrease in profitability compared to the previous year. This reduction could be attributed to various factors such as increased costs, lower sales volumes, or operational inefficiencies.

Furthermore, as of December 31, 2024, Albemarle Corp experienced a negative operating profit margin of -33.04%, implying that the company incurred operating losses exceeding its operating income. This downturn raises concerns about the company's ability to effectively control costs and generate profits from its core operations.

In conclusion, the analysis of Albemarle Corp's operating profit margin reveals a mixed performance trend over the years, showcasing both periods of strong profitability and challenges. It underscores the importance of closely monitoring and managing operating expenses to sustain and enhance overall profitability.