Albemarle Corp (ALB)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	9,961,520	9,412,180	7,982,630	5,625,270	4,268,230
Debt-to-capital ratio		0.24	0.27	0.29	0.26	0.39

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,118,140K ÷ ($3,118,140K + $9,961,520K)
= 0.24

The debt-to-capital ratio of Albemarle Corp has shown a decreasing trend over the past five years. As of December 31, 2020, the ratio stood at 0.39, indicating that 39% of the company's capital structure was funded by debt. However, this ratio decreased to 0.26 by December 31, 2021, and further to 0.29 by December 31, 2022. Subsequently, by December 31, 2023, the ratio dropped to 0.27, and by the most recent year-end of December 31, 2024, it reached 0.24.

This downward trend in the debt-to-capital ratio suggests that Albemarle Corp has been reducing its reliance on debt to finance its operations and investments relative to its equity. A declining debt-to-capital ratio can signal improved financial health and lower risk for the company, as it indicates a decreasing level of leverage in the capital structure. This can enhance the company's ability to weather economic downturns and generate higher returns for its shareholders.