Albemarle Corp (ALB)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	9,412,180	7,982,630	5,625,270	4,268,230	3,932,250
ROE		16.72%	33.70%	2.20%	8.80%	13.56%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,573,480K ÷ $9,412,180K
= 16.72%

Albemarle Corp.'s return on equity (ROE) has experienced fluctuations over the past five years. In 2023, the ROE stands at 16.72%, showing a decline from the exceptionally high ROE of 33.70% in 2022. The significant drop in ROE from 2022 to 2023 could indicate various factors affecting the company's profitability and efficiency in generating returns for shareholders.

Comparing the recent ROE to the ROEs in 2021, 2020, and 2019, it is evident that Albemarle Corp. has demonstrated improved performance since then. In 2021, the company's ROE was a mere 2.20%, showing a substantial increase in profitability by 14.52 percentage points in 2023. The ROE in 2020 and 2019 was 8.80% and 13.56%, respectively, the current ROE being higher than both these years, indicating a positive trend in the company's profitability and efficiency over the past three years.

Overall, while Albemarle Corp. experienced a decrease in ROE in 2023 compared to the previous year, the company has shown an overall improvement in ROE since 2019. This trend suggests that Albemarle Corp. has been more effective in utilizing its equity to generate returns for its shareholders over the past five years.