Albemarle Corp (ALB)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	9,412,180	9,897,820	9,815,310	9,212,740	7,982,630	6,732,640	6,085,290	5,826,600	5,625,270	5,694,120	6,165,550	5,746,380	4,268,230	4,124,880	4,024,470	3,878,000	3,932,250	3,836,560	3,800,800	3,672,270
ROE		16.72%	33.58%	39.92%	39.89%	33.70%	23.07%	4.33%	4.83%	2.20%	3.73%	11.41%	6.34%	8.80%	9.25%	10.89%	13.07%	13.56%	14.92%	14.39%	18.94%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,573,476K ÷ $9,412,180K
= 16.72%

Albemarle Corp.'s Return on Equity (ROE) has been exhibiting fluctuations over the past eight quarters. In Q1 2022 and Q2 2022, the company had a relatively low ROE of 4.83% and 4.33%, respectively. However, the ROE started to increase significantly from Q3 2022 onwards, reaching a peak of 39.92% in Q2 2023.

The trend indicates an improvement in the company's ability to generate profits from shareholders' equity over time. The increasing ROE is generally considered a positive sign as it suggests that the company is efficiently utilizing its equity capital to generate earnings.

Investors typically view a higher ROE favorably as it indicates better profitability and efficiency in utilizing shareholders' investments. However, it is important to note that fluctuations in ROE levels should be analyzed in conjunction with other financial metrics and factors affecting the company's performance to gain a comprehensive understanding of its financial health and prospects.