Albemarle Corp (ALB)

Return on total capital

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Earnings before interest and tax (EBIT) US$ in thousands 251,881 2,470,060 798,434 505,812 666,123
Long-term debt US$ in thousands 3,541,000 3,214,970 2,004,320 2,767,380 2,862,920
Total stockholders’ equity US$ in thousands 9,412,180 7,982,630 5,625,270 4,268,230 3,932,250
Return on total capital 1.94% 22.06% 10.46% 7.19% 9.80%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $251,881K ÷ ($3,541,000K + $9,412,180K)
= 1.94%

The return on total capital for Albemarle Corp. has varied over the past five years. In 2023, it stood at 14.98%, which was a decrease from the previous year's figure of 29.03%. This indicates a decline in the company's efficiency in generating returns from its total capital in 2023 compared to 2022.

Looking further back, in 2021, the return on total capital was 7.46%, showing a significant improvement from the previous year's 8.08%. This suggests that the company made strides in utilizing its total capital more effectively in 2021 compared to 2020.

In comparison to 2019, where the return on total capital was 11.40%, the figures for the subsequent years show fluctuations. Therefore, it is worth noting that while the return on total capital for Albemarle Corp. has not been consistent, the company's ability to generate returns from its total capital has shown both improvements and declines over the past five years.


Peer comparison

Dec 31, 2023