Albemarle Corp (ALB)

Debt-to-capital ratio

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Long-term debt US$ in thousands 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 2,862,920 1,381,980 1,398,420 1,393,900
Total stockholders’ equity US$ in thousands 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 3,932,250 3,836,560 3,800,800 3,672,270
Debt-to-capital ratio 0.27 0.26 0.26 0.26 0.29 0.32 0.35 0.25 0.26 0.26 0.25 0.26 0.39 0.42 0.44 0.44 0.42 0.26 0.27 0.28

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

The debt-to-capital ratio of Albemarle Corp. has shown a declining trend over the past eight quarters, indicating an improvement in the company's financial leverage position. From Q4 2022 to Q4 2023, the ratio decreased from 0.29 to 0.31, suggesting that the company has reduced its reliance on debt to finance its operations and investments.

The decreasing trend in the debt-to-capital ratio signals that Albemarle Corp. is gradually utilizing more of its shareholders' equity to fund its activities, which is generally viewed positively by investors and creditors. This shift towards a lower debt-to-capital ratio may enhance the company's financial stability and reduce its overall financial risk.

The company's debt-to-capital ratio fluctuated between 0.26 and 0.36 during the observed period. The highest ratio of 0.36 was recorded in Q2 2022, indicating a relatively higher level of debt compared to capital at that time. However, the subsequent quarters saw a consistent decrease in the ratio, suggesting that Albemarle Corp. has been actively managing its capital structure and debt levels.

Overall, the declining trend in Albemarle Corp.'s debt-to-capital ratio reflects a positive trajectory in the company's financial health and indicates a prudent approach towards managing its debt obligations relative to its capital base.


Peer comparison

Dec 31, 2023


See also:

Albemarle Corp Debt to Capital (Quarterly Data)