Albemarle Corp (ALB)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	16,609,600	17,455,200	18,388,300	19,032,300	18,270,700	18,883,400	19,109,700	17,564,400	15,456,500	13,828,500	12,520,400	11,416,100	10,974,100	10,832,300	10,796,900	10,290,300	10,450,900	10,232,000	10,170,300	9,847,640
Total stockholders’ equity	US$ in thousands	9,961,520	10,240,600	11,222,600	11,532,800	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
Financial leverage ratio		1.67	1.70	1.64	1.65	1.94	1.91	1.95	1.91	1.94	2.05	2.06	1.96	1.95	1.90	1.75	1.79	2.45	2.48	2.53	2.54

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 gradual decrease from 2.54 as of March 31, 2020, to 1.67 as of December 31, 2024. This indicates a decreasing trend in the company's reliance on debt to finance its operations and investments.

The ratio peaked at 2.54 in March 2020, suggesting higher levels of debt relative to equity at that time. However, the ratio has steadily declined over the subsequent years, reaching a low of 1.64 in June 2024. This decreasing trend in financial leverage implies that the company has been effectively managing its debt levels and gradually improving its capital structure.

It is important to note that a lower financial leverage ratio typically indicates a lower financial risk for the company, as it signals a greater proportion of equity in the capital structure. This can enhance the company's financial stability and resilience to economic downturns or unexpected challenges.

Overall, the decreasing trend in Albemarle Corp's financial leverage ratio reflects a prudent approach to managing its capital structure and debt levels over the period covered in the analysis.