Albemarle Corp (ALB)

Debt-to-equity 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-equity ratio		0.31	0.38	0.40	0.36	0.65

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,118,140K ÷ $9,961,520K
= 0.31

The debt-to-equity ratio of Albemarle Corp has shown a decreasing trend over the past five years, starting at 0.65 on December 31, 2020, and decreasing to 0.31 by December 31, 2024. This indicates that the company has been relying less on debt financing relative to equity financing over this period. A lower debt-to-equity ratio generally suggests a lower financial risk and better solvency as the company is using proportionally less debt to fund its operations. This trend may signify improved financial stability and a stronger balance sheet position for Albemarle Corp. However, it is important to note that the optimal debt-to-equity ratio varies by industry and individual company circumstances, and further analysis would be needed to fully assess the implications of this trend for Albemarle Corp.