Albemarle Corp (ALB)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	-1,179,447	-1,872,420	-500,897	337,344	1,573,476	3,323,596	3,918,278	3,675,008	2,689,811	1,553,547	263,551	281,378	123,672	212,131	703,213	364,237	375,764	381,520	438,289	506,863
Total assets	US$ in thousands	16,609,600	17,455,200	18,388,300	19,032,300	18,270,700	18,883,400	19,109,700	17,564,400	15,456,500	13,828,500	12,520,400	11,416,100	10,974,100	10,832,300	10,796,900	10,290,300	10,450,900	10,232,000	10,170,300	9,847,640
ROA		-7.10%	-10.73%	-2.72%	1.77%	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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $-1,179,447K ÷ $16,609,600K
= -7.10%

Albemarle Corp's return on assets (ROA) has shown variability over the analyzed periods. The ROA started at 5.15% in March 2020, but gradually declined to 1.13% by December 2021. However, there was a significant improvement in the company's performance in the subsequent quarters, with ROA rising to 20.92% by March 2023. This upward trend continued until September 2023 when the ROA reached 17.60%.

Unfortunately, there was a notable decrease in the company's ROA in the following periods, dropping to 1.77% by March 2024, and then turning negative in June and September 2024 at -2.72% and -10.73% respectively. Although there was a slight recovery in profitability by December 2024, with a ROA of -7.10%, it is evident that Albemarle Corp faced challenges in generating profits efficiently during these quarters.

The fluctuation in ROA reflects changes in the company's ability to generate earnings from its assets, indicating potential issues with operational efficiency or profitability. It is imperative for Albemarle Corp to closely monitor and address the factors influencing its ROA to sustain long-term financial health and viability.