Albemarle Corp (ALB)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	18,270,700	15,456,500	10,974,100	10,450,900	9,860,860
Total stockholders’ equity	US$ in thousands	9,412,180	7,982,630	5,625,270	4,268,230	3,932,250
Financial leverage ratio		1.94	1.94	1.95	2.45	2.51

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $18,270,700K ÷ $9,412,180K
= 1.94

Albemarle Corp.'s financial leverage ratio has shown a fluctuating trend over the past five years. The ratio was relatively stable in 2022 and 2023 at 1.94, indicating that the company's level of debt relative to its equity remained consistent during these years. However, there was a slight increase in the financial leverage ratio from 2021 to 2022, moving from 1.95 to 1.94.

The more notable changes occurred between 2020 and 2021, where the financial leverage ratio decreased significantly from 2.45 to 1.95. This suggests that the company may have reduced its reliance on debt financing or increased its equity base during this period. Similarly, from 2019 to 2020, there was a decline in the financial leverage ratio from 2.51 to 2.45.

Overall, the trend in Albemarle Corp.'s financial leverage ratio indicates variability in the company's capital structure over the past five years. Investors and stakeholders may want to further investigate the reasons behind these fluctuations to assess the company's risk profile and financial health.