Albemarle Corp (ALB)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 16,609,600 | 18,270,700 | 15,456,500 | 10,974,100 | 10,450,900 |
| Operating ROA | -10.70% | 1.38% | 15.98% | 7.28% | 4.84% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-1,776,540K ÷ $16,609,600K
= -10.70%
Albemarle Corp's operating return on assets (operating ROA) has exhibited varying trends over the past five years.
As of December 31, 2020, the operating ROA was 4.84%, indicating that for every dollar of assets, the company generated 4.84 cents in operating income.
By December 31, 2021, the operating ROA had improved to 7.28%, suggesting increased efficiency in asset utilization and/or improved operational performance.
The following year, as of December 31, 2022, Albemarle Corp's operating ROA experienced a significant surge to 15.98%, reflecting a substantial boost in profitability relative to the assets employed.
However, by December 31, 2023, the company's operating ROA decreased notably to 1.38%, indicating a decline in the efficiency of generating operating income from its assets.
Most recently, as of December 31, 2024, Albemarle Corp's operating ROA turned negative at -10.70%, which suggests that the company's operating losses exceeded the value of its assets during that period.
In conclusion, the varying trends in Albemarle Corp's operating ROA over the stated years reflect fluctuations in the company's ability to generate operating income from its asset base efficiently. An analyst would typically investigate the underlying reasons for these fluctuations to assess the company's operational performance and financial health accurately.
Peer comparison
Dec 31, 2024