Albemarle Corp (ALB)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-1,179,450	1,573,480	2,689,820	123,672	375,764
Total assets	US$ in thousands	16,609,600	18,270,700	15,456,500	10,974,100	10,450,900
ROA		-7.10%	8.61%	17.40%	1.13%	3.60%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $-1,179,450K ÷ $16,609,600K
= -7.10%

Based on the provided data, Albemarle Corp's return on assets (ROA) has experienced fluctuations over the years. In 2020, the ROA was 3.60%, which decreased significantly to 1.13% in 2021. However, there was a substantial improvement in 2022, with the ROA reaching 17.40%. In 2023, the ROA decreased to 8.61%, and there was a notable decline to -7.10% in 2024.

The fluctuating trend in ROA indicates that Albemarle Corp's efficiency in generating profits from its assets has been inconsistent. It is essential for the company to closely monitor and manage its asset utilization to ensure sustained profitability in the future. Additionally, the negative ROA in 2024 raises concerns about the company's asset management and profitability, requiring further investigation into the underlying reasons for this significant decline.