Albemarle Corp (ALB)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	16,609,600	18,270,700	15,456,500	10,974,100	10,450,900
Total stockholders’ equity	US$ in thousands	9,961,520	9,412,180	7,982,630	5,625,270	4,268,230
Financial leverage ratio		1.67	1.94	1.94	1.95	2.45

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,609,600K ÷ $9,961,520K
= 1.67

The financial leverage ratio of Albemarle Corp has shown a declining trend over the years, decreasing from 2.45 in December 2020 to 1.67 in December 2024. This indicates that the company's reliance on debt financing has decreased over this period. A lower financial leverage ratio suggests that the company has a stronger equity position relative to its debt, which can be seen as a positive sign of financial stability and lower risk. Overall, Albemarle Corp's decreasing financial leverage ratio reflects a prudent approach to managing its capital structure and debt levels.