Albemarle Corp (ALB)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	3,118,140	3,541,000	3,214,970	2,004,320	2,767,380
Total assets	US$ in thousands	16,609,600	18,270,700	15,456,500	10,974,100	10,450,900
Debt-to-assets ratio		0.19	0.19	0.21	0.18	0.26

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,118,140K ÷ $16,609,600K
= 0.19

The debt-to-assets ratio of Albemarle Corp has shown a declining trend over the past five years. As of December 31, 2020, the ratio was 0.26, indicating that 26% of the company's assets were financed through debt. By December 31, 2021, the ratio decreased to 0.18, signifying a lower reliance on debt financing compared to the previous year.

Subsequently, the ratio increased slightly to 0.21 by December 31, 2022, before decreasing again to 0.19 by both December 31, 2023, and December 31, 2024. These fluctuations suggest that Albemarle Corp has been managing its debt levels relative to its asset base, with a trend towards lower debt utilization over the years.

Overall, the decreasing trend in the debt-to-assets ratio indicates that Albemarle Corp has been maintaining a prudent level of debt relative to its asset holdings, which may contribute to the company's financial stability and risk management strategies.