Albemarle Corp (ALB)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | -1,092,364 | -1,677,072 | -424,951 | 486,937 | 2,003,750 | 3,659,102 | 4,459,270 | 4,262,031 | 3,080,404 | 1,935,054 | 333,453 | 369,247 | 153,118 | 216,452 | 852,857 | 422,327 | 430,189 | 440,941 | 492,398 | 575,952 |
| 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 |
| Pretax margin | -20.31% | -25.79% | -5.70% | 5.80% | 20.84% | 37.03% | 46.15% | 48.58% | 42.08% | 34.60% | 7.70% | 10.18% | 4.60% | 6.53% | 26.41% | 13.12% | 13.75% | 13.60% | 14.59% | 16.47% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-1,092,364K ÷ $5,377,520K
= -20.31%
Albemarle Corp's pretax margin fluctuated significantly over the analysis period from March 31, 2020, to December 31, 2024. The pretax margin started at a healthy 16.47% in March 2020, indicating a strong profitability level. However, it gradually decreased to 13.12% by March 2021 before experiencing a significant spike to 26.41% in June 2021, reflecting a notable improvement in profitability.
Subsequently, the pretax margin dropped to 6.53% in September 2021 and further declined to 4.60% by December 2021, indicating a concerning trend of decreasing profitability. However, there was a marked recovery in the pretax margin to 10.18% by March 2022. Interestingly, the pretax margin increased significantly to 34.60% in September 2022 and surged to 42.08% by December 2022, indicating a strong performance in terms of profitability during this period.
The pretax margin reached its peak at 48.58% in March 2023, reflecting an exceptional profitability level. However, the margin declined in the subsequent quarters, reaching 5.80% by March 31, 2024. The pretax margin turned negative in the following quarters, with -5.70% in June 2024, -25.79% in September 2024, and -20.31% in December 2024. This negative trend suggests operational challenges or declining profitability during the latter part of the analysis period.
Overall, while Albemarle Corp demonstrated varying levels of profitability over the analyzed timeframe, with periods of strong performance and notable declines, the negative pretax margins towards the end of the period raise concerns about the company's financial health and operational efficiency. Further investigation into the factors influencing these fluctuations would be necessary to assess the company's long-term sustainability.
Peer comparison
Dec 31, 2024