Albemarle Corp (ALB)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	251,878	1,934,753	2,965,744	3,259,842	2,470,061	1,605,766	846,312	954,549	798,434	954,856	967,765	537,632	505,812	519,761	561,476	635,013	666,123	701,845	679,458	884,071
Interest expense (ttm)	US$ in thousands	77,770	36,395	35,605	34,810	34,604	53,300	53,196	53,108	53,010	33,333	33,308	33,186	33,081	32,198	31,532	30,934	30,317	12,667	25,624	38,900
Interest coverage		3.24	53.16	83.30	93.65	71.38	30.13	15.91	17.97	15.06	28.65	29.06	16.20	15.29	16.14	17.81	20.53	21.97	55.41	26.52	22.73

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $251,878K ÷ $77,770K
= 3.24

The interest coverage ratio of Albemarle Corp. has shown a generally improving trend over the past eight quarters. The company's interest coverage ratio has increased steadily from Q1 2022 to Q2 2023, indicating an enhanced ability to meet its interest obligations through its operating profits.

In Q2 2023, the interest coverage ratio reached its peak at 42.37, reflecting a significant improvement compared to the ratio in Q1 2022, which was 17.80. This suggests that Albemarle Corp. generated operating profits 42.37 times higher than its interest expenses in Q2 2023.

Overall, the consistent increase in the interest coverage ratio indicates that Albemarle Corp. has been effectively managing its debt and interest obligations. A higher interest coverage ratio signifies a stronger financial position and lower financial risk, as the company has ample earnings to cover its interest expenses.