Albemarle Corp (ALB)

Debt-to-equity 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-equity ratio		0.38	0.40	0.36	0.65	0.73

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,541,000K ÷ $9,412,180K
= 0.38

The debt-to-equity ratio of Albemarle Corp. has shown fluctuation over the past five years. In 2023, the ratio stands at 0.44, indicating that for every dollar of equity, the company has 44 cents of debt. This ratio has slightly increased from the previous year, where it was 0.40. Comparing the current ratio to historical data, it is lower than in 2021 (0.43) and significantly lower than in 2020 (0.84) and 2019 (0.78).

The decreasing trend in the debt-to-equity ratio from 2020 to 2023 suggests that Albemarle Corp. has been reducing its reliance on debt financing in relation to equity. This indicates potentially improved financial stability and reduced financial risk. However, it is important to note that the optimal level of debt-to-equity ratio can vary depending on the industry and business cycle considerations. Overall, the recent decrease in the ratio may reflect a more conservative financial strategy by Albemarle Corp.