Albemarle Corp (ALB)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -1,776,545 | -2,630,813 | -1,661,997 | -1,029,388 | 251,878 | 1,934,753 | 2,965,744 | 3,259,842 | 2,470,061 | 1,605,766 | 846,312 | 954,549 | 798,434 | 954,856 | 967,765 | 537,632 | 505,812 | 519,761 | 561,476 | 635,013 |
| Long-term debt | US$ in thousands | 3,118,140 | 3,565,990 | 3,519,500 | 3,519,450 | 3,541,000 | 3,495,970 | 3,509,290 | 3,233,390 | 3,214,970 | 3,118,750 | 3,205,730 | 1,985,700 | 2,004,320 | 2,021,490 | 2,043,790 | 2,030,030 | 2,767,380 | 2,940,530 | 3,132,190 | 3,105,220 |
| Total stockholders’ equity | US$ in thousands | 9,961,520 | 10,240,600 | 11,222,600 | 11,532,800 | 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 |
| Return on total capital | -13.58% | -19.05% | -11.27% | -6.84% | 1.94% | 14.45% | 22.26% | 26.19% | 22.06% | 16.30% | 9.11% | 12.22% | 10.46% | 12.38% | 11.79% | 6.91% | 7.19% | 7.36% | 7.85% | 9.09% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-1,776,545K ÷ ($3,118,140K + $9,961,520K)
= -13.58%
The return on total capital for Albemarle Corp has shown fluctuating trends over the reporting periods provided. Starting at 9.09% as of March 31, 2020, the return decreased gradually to 7.19% by December 31, 2020. There was then an increase in performance with a peak of 26.19% by March 31, 2023.
However, from that point onwards, the return began to decline significantly. By June 30, 2024, the return on total capital had turned negative, reaching -11.27% and worsening to -19.05% by September 30, 2024. The return showed a slight improvement by December 31, 2024, but still remained negative at -13.58%.
The overall trend indicates that Albemarle Corp's return on total capital has been volatile, being subject to significant fluctuations over the periods examined. This suggests potential challenges in effectively utilizing its capital resources to generate returns for shareholders. Further analysis and investigation may be needed to understand the reasons behind the sharp declines in the return on total capital observed in the most recent periods.
Peer comparison
Dec 31, 2024