Albemarle Corp (ALB)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	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	533,228	572,433	547,108	695,371
Total assets	US$ in thousands	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	9,860,860	8,141,600	8,094,410	7,871,060
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%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $1,573,476K ÷ $18,270,700K
= 8.61%

Albemarle Corp.'s return on assets (ROA) has experienced fluctuations over the past eight quarters. In Q1 2022, the ROA was 2.46%, which increased slightly to 2.10% in Q2 2022. However, there was a significant improvement in Q3 2022, with the ROA jumping to 11.23%. This positive trend continued in Q4 2022 as the ROA further increased to 17.40%.

The company's ROA peaked in Q1 2023 at 20.92%, reflecting a strong performance in utilizing its assets to generate profits. Although there was a slight decline in Q2 2023 to 20.50%, the ROA remained at a relatively high level. In Q3 2023, there was a noticeable drop in the ROA to 17.60%, indicating a decrease in the company's profitability relative to its asset base. Finally, in Q4 2023, the ROA decreased further to 8.61%.

Overall, the analysis suggests that Albemarle Corp.'s ROA has shown volatility over the observed period, with periods of significant improvement followed by declines. It is essential for stakeholders to monitor these fluctuations and understand the factors driving the changes in ROA to assess the company's efficiency in utilizing its assets to generate profits.