Albemarle Corp (ALB)
Return on assets (ROA)
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Net income | US$ in thousands | 1,573,480 | 2,689,820 | 123,672 | 375,764 | 533,228 |
Total assets | US$ in thousands | 18,270,700 | 15,456,500 | 10,974,100 | 10,450,900 | 9,860,860 |
ROA | 8.61% | 17.40% | 1.13% | 3.60% | 5.41% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,573,480K ÷ $18,270,700K
= 8.61%
Albemarle Corp.'s Return on Assets (ROA) has fluctuated over the past five years, as seen in the following data: 8.61% in 2023, 17.40% in 2022, 1.13% in 2021, 3.60% in 2020, and 5.41% in 2019. The ROA measures the company's efficiency in generating profits from its assets.
The ROA was highest in 2022 at 17.40%, indicating that the company effectively utilized its assets to generate profits during that year. The sharp decline in ROA in 2021 to 1.13% suggests a significant drop in profitability relative to the company's asset base. The subsequent increase in 2023 to 8.61% shows an improvement in profit generation from assets but is still below the 2022 level.
Overall, it is essential to delve deeper into Albemarle Corp.'s financial performance to understand the factors contributing to the fluctuations in ROA over the years and assess the company's ability to efficiently utilize its assets to generate returns for its shareholders.
Peer comparison
Dec 31, 2023