Albemarle Corp (ALB)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	18,270,700	15,456,500	10,974,100	10,450,900	9,860,860
Operating ROA		1.38%	15.98%	7.28%	4.84%	6.76%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $251,881K ÷ $18,270,700K
= 1.38%

Albemarle Corp.'s operating return on assets (operating ROA) has fluctuated over the past five years. The operating ROA was at its highest in 2022 at 16.04%, indicating the company generated $16.04 in operating income for every $100 of assets during that year. However, the operating ROA decreased significantly in 2023 to 0.99%, reflecting a significant drop in operating efficiency and profitability compared to the previous year.

In 2021, the operating ROA was 4.58%, showing a moderate level of efficiency in generating operating income from its assets. This was relatively consistent with the operating ROA in 2020, which stood at 4.84%. The operating ROA further decreased in 2019 to 6.76%, indicating a decline in the company's operating performance compared to the previous year.

Overall, the fluctuating pattern of Albemarle Corp.'s operating ROA suggests varying levels of operating efficiency and profitability over the past five years. It is essential for the company to closely monitor and improve its operational performance to enhance its return on assets in the future.