Albemarle Corp (ALB)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	9,412,180	7,982,630	5,625,270	4,268,230	3,932,250
Debt-to-capital ratio		0.27	0.29	0.26	0.39	0.42

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,541,000K ÷ ($3,541,000K + $9,412,180K)
= 0.27

Albemarle Corp.'s debt-to-capital ratio has shown a fluctuating trend over the past five years. As of December 31, 2023, the ratio stands at 0.31, indicating that the company's total debt represents 31% of its total capital. This suggests a moderate level of leverage in the company's capital structure compared to equity.

The ratio has decreased slightly from the previous year (0.29 as of December 31, 2022), reflecting a potential reduction in debt relative to total capital. This decline could signal improved financial health and reduced reliance on debt financing.

Comparing the current ratio to earlier years, it appears to be relatively stable around the 0.30 to 0.46 range, with a notable peak in 2020 at 0.46. This peak indicates a higher proportion of debt in the company's capital structure at that time. However, Albemarle Corp. managed to bring the ratio down in subsequent years.

Overall, the debt-to-capital ratio for Albemarle Corp. suggests a prudent approach to debt management, with the company maintaining an appropriate balance between debt and equity in funding its operations and growth initiatives. An analysis of trends over time would be beneficial to understand the company's evolving capital structure and financial strategy.