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.