Albemarle Corp (ALB)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 12.33% | 29.26% | 40.15% | 44.48% | 42.00% | 41.30% | 34.98% | 32.63% | 29.99% | 30.99% | 31.95% | 31.58% | 31.80% | 32.94% | 33.29% | 34.79% | 35.04% | 35.23% | 35.43% | 35.32% |
| Operating profit margin | 2.62% | 19.58% | 30.69% | 37.16% | 33.74% | 28.71% | 19.54% | 26.32% | 23.99% | 28.82% | 29.97% | 16.70% | 16.17% | 16.03% | 16.64% | 18.16% | 18.56% | 19.95% | 19.89% | 26.11% |
| Pretax margin | 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% | 17.31% | 19.24% | 19.30% | 25.33% |
| Net profit margin | 16.36% | 33.63% | 40.55% | 41.89% | 36.75% | 27.78% | 6.08% | 7.76% | 3.72% | 6.40% | 21.78% | 11.31% | 12.01% | 11.77% | 12.99% | 14.50% | 14.86% | 16.27% | 16.01% | 20.54% |
Albemarle Corp.'s profitability ratios exhibit variability over the last eight quarters. The gross profit margin has ranged from 12.33% to 44.48%, with a downward trend in recent quarters. This indicates a decline in the company's ability to generate profits after accounting for the cost of goods sold.
Similarly, the operating profit margin has fluctuated between 1.88% and 37.16%, displaying significant volatility. The company experienced a notable drop in this margin in Q4 2023 compared to Q3 2023. This suggests that Albemarle Corp. may be facing challenges in controlling its operating expenses and operating efficiency.
On the positive side, the pretax margin has shown improvement in recent quarters, reaching as high as 50.13% in Q1 2023. This indicates that the company is effectively managing its operating expenses and interest payments compared to its total revenue.
The net profit margin, which reflects the company's bottom-line profitability after all expenses have been deducted, has also demonstrated variability over the quarters, ranging from 6.08% to 41.89%. The company's ability to generate net income has shown improvement in Q4 2023 compared to prior quarters.
In conclusion, while Albemarle Corp. has shown fluctuations in its profitability ratios over the recent quarters, there are areas that require attention, such as controlling costs and improving operational efficiency to ensure sustainable profitability in the future.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.38% | 10.25% | 15.52% | 18.56% | 15.98% | 11.61% | 6.76% | 8.36% | 7.28% | 8.81% | 8.96% | 5.22% | 4.84% | 5.08% | 5.52% | 6.45% | 6.76% | 8.62% | 8.39% | 11.23% |
| Return on assets (ROA) | 8.61% | 17.60% | 20.50% | 20.92% | 17.40% | 11.23% | 2.10% | 2.46% | 1.13% | 1.96% | 6.51% | 3.54% | 3.60% | 3.73% | 4.31% | 5.15% | 5.41% | 7.03% | 6.76% | 8.83% |
| Return on total capital | 1.94% | 14.45% | 22.26% | 26.19% | 22.06% | 16.30% | 9.11% | 12.22% | 10.46% | 12.38% | 11.79% | 6.91% | 7.19% | 7.36% | 7.85% | 9.09% | 9.80% | 13.45% | 13.07% | 17.45% |
| Return on equity (ROE) | 16.72% | 33.58% | 39.92% | 39.89% | 33.70% | 23.07% | 4.33% | 4.83% | 2.20% | 3.73% | 11.41% | 6.34% | 8.80% | 9.25% | 10.89% | 13.07% | 13.56% | 14.92% | 14.39% | 18.94% |
Albemarle Corp.'s profitability ratios show positive trends over the quarters, indicating an improvement in the company's profitability.
- Operating return on assets (Operating ROA) has fluctuated but generally increased from Q1 2022 to Q4 2023, with a notable peak in Q2 2023 at 15.52%. This ratio demonstrates the company's operational efficiency in generating profits from its assets.
- Return on assets (ROA) also displays a positive trajectory, peaking in Q1 2023 at 20.92%. This metric signifies Albemarle's ability to generate earnings relative to its total assets over time.
- Return on total capital has shown a consistent upward trend, reaching a high of 35.07% in Q1 2023. This ratio reflects the company's efficiency in generating returns from both equity and debt investments.
- Return on equity (ROE) has steadily improved over the quarters, with Q2 2023 showing the highest value at 39.92%. ROE indicates the profitability of shareholders' investments in the company.
Overall, Albemarle Corp.'s profitability ratios suggest that the company has been effectively utilizing its assets, capital, and equity to generate profits, leading to increased shareholder value and financial performance.