Albemarle Corp (ALB)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,541,000 | 3,214,970 | 2,004,320 | 2,767,380 | 2,862,920 |
| Total assets | US$ in thousands | 18,270,700 | 15,456,500 | 10,974,100 | 10,450,900 | 9,860,860 |
| Debt-to-assets ratio | 0.19 | 0.21 | 0.18 | 0.26 | 0.29 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,541,000K ÷ $18,270,700K
= 0.19
The debt-to-assets ratio for Albemarle Corp. has shown some fluctuation over the past five years. In 2023, the ratio stands at 0.23, indicating that 23% of the company's assets are financed by debt. Comparing this to the ratios in the previous years, we can see that in 2022 and 2021, the ratio was slightly lower at 0.21 and 0.22, respectively.
In 2020, the ratio spiked to 0.34, signifying a higher proportion of debt relative to assets, before decreasing to 0.31 in 2019. This fluctuation may suggest varying levels of leverage and financing strategies adopted by Albemarle Corp. during these years.
Overall, a lower debt-to-assets ratio typically indicates lower financial risk, as it signifies that a smaller portion of the company's assets is funded by debt. Conversely, a higher ratio can imply greater financial leverage and potential risk in times of economic uncertainty. It is essential for investors and stakeholders to monitor changes in the debt-to-assets ratio to assess Albemarle Corp.'s financial stability and risk management practices.
Peer comparison
Dec 31, 2023