Albemarle Corp (ALB)

Solvency ratios

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
Debt-to-assets ratio 0.19 0.19 0.18 0.18 0.21 0.23 0.26 0.17 0.18 0.19 0.19 0.20 0.26 0.29 0.31 0.32 0.29 0.17 0.17 0.18
Debt-to-capital ratio 0.27 0.26 0.26 0.26 0.29 0.32 0.35 0.25 0.26 0.26 0.25 0.26 0.39 0.42 0.44 0.44 0.42 0.26 0.27 0.28
Debt-to-equity ratio 0.38 0.35 0.36 0.35 0.40 0.46 0.53 0.34 0.36 0.36 0.33 0.35 0.65 0.71 0.78 0.80 0.73 0.36 0.37 0.38
Financial leverage ratio 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 2.51 2.12 2.13 2.14

Based on the provided solvency ratios of Albemarle Corp, we can analyze its financial health in terms of leverage and ability to meet its financial obligations.

The Debt-to-Assets ratio has been relatively stable over the quarters, ranging from 0.18 to 0.24. This ratio indicates that Albemarle Corp finances a significant portion of its assets through debt, with the assets mostly funded by equity.

The Debt-to-Capital ratio shows a similar trend as the Debt-to-Assets ratio, reflecting the proportion of debt in the company's capital structure. The ratios have been consistent around 0.26 to 0.33, indicating a moderate level of debt in relation to capital over the quarters.

The Debt-to-Equity ratio reflects the company's reliance on debt financing compared to equity. Albemarle Corp shows variations in this ratio, ranging from 0.35 to 0.57. A higher ratio suggests higher financial risk as the company has more debt relative to equity.

The Financial Leverage ratio, which indicates the proportion of assets financed by debt versus equity, has been fluctuating slightly over the quarters. The ratios range from 1.91 to 2.06, suggesting that the company has been managing its assets using a mix of debt and equity financing.

Overall, Albemarle Corp maintains a relatively stable solvency position with a manageable level of debt compared to its assets, capital, and equity. However, the company should monitor its debt levels, especially the Debt-to-Equity ratio, to ensure sustainable financial stability in the long run.

Coverage ratios

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
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

Albemarle Corp.'s interest coverage ratio has exhibited fluctuations over the past eight quarters. The interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio suggests that the company is more capable of covering its interest expenses.

The interest coverage ratio for Albemarle Corp. has shown an overall increasing trend from Q1 2022 to Q2 2023, with the ratio ranging from 15.56 to 42.37. This suggests that the company's operating income has been more than sufficient to cover its interest expenses during these periods.

In Q2 2023, the interest coverage ratio was at its peak of 42.37, indicating a strong ability to pay interest expenses. However, it decreased in Q3 and Q4 2023 but remained at healthy levels of 34.76 and 17.53, respectively.

The fluctuations in the interest coverage ratio might be attributed to changes in Albemarle Corp.'s operating income and/or interest expenses. It is crucial to monitor this ratio continuously to ensure that the company can comfortably meet its interest obligations and maintain financial stability.

See also:

Albemarle Corp Solvency Ratios (Quarterly Data)