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