Albemarle Corp., balance sheet: debt

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Current portion of long-term debt	2,128)	389,920)	804,677)	187,336)	307,294)
Long-term debt, excluding current portion	3,214,972)	2,004,319)	2,767,381)	2,862,921)	1,397,916)
Total long-term debt (carrying amount)	3,217,100)	2,394,239)	3,572,058)	3,050,257)	1,705,210)

Download chart

Debt item	Description	The company
Total long-term debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Albemarle Corp. total debt decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.

	Dec 31, 2022
Selected Financial Data (US$ in thousands)
Total long-term debt (fair value)	2,993,027)
Financial Ratio
Debt, fair value to carrying amount ratio	0.93

Weighted-average interest rate on long-term debt: 3.94%

Interest rate	Debt amount¹	Interest rate × Debt amount
1.13%	401,265)	4,514)
1.63%	532,000)	8,645)
3.45%	171,612)	5,921)
4.65%	650,000)	30,225)
5.05%	600,000)	30,300)
5.45%	350,000)	19,075)
5.65%	450,000)	25,425)
0.36%	2,997)	11)
4.41%	79,404)	3,502)
Total	3,237,278)	127,617)
3.94%

¹ US$ in thousands

² Weighted-average interest rate = 100 × 127,617 ÷ 3,237,278 = 3.94%

Albemarle Corp., interest costs incurred

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Interest and financing expenses	122,973)	61,476)	73,116)	57,695)	52,405)
Interest capitalized on significant capital projects	31,100)	50,000)	30,400)	30,200)	19,300)
Interest costs incurred	154,073)	111,476)	103,516)	87,895)	71,705)

Download chart

Debt item	Description	The company
Interest and financing expenses	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Albemarle Corp. interest and financing expenses decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Interest capitalized on significant capital projects	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Albemarle Corp. interest capitalized on significant capital projects increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Albemarle Corp. interest costs incurred increased from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Net income attributable to Albemarle Corporation	2,689,816)	123,672)	375,764)	533,228)	693,562)
Add: Net income attributable to noncontrolling interest	125,315)	76,270)	70,851)	71,129)	45,577)
Add: Income tax expense	390,588)	29,446)	54,425)	88,161)	144,826)
Add: Interest and financing expenses	122,973)	61,476)	73,116)	57,695)	52,405)
Earnings before interest and tax (EBIT)	3,328,692)	290,864)	574,156)	750,213)	936,370)

Interest costs incurred	154,073)	111,476)	103,516)	87,895)	71,705)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	27.07	4.73	7.85	13.00	17.87
Adjusted interest coverage ratio (with capitalized interest)²	21.60	2.61	5.55	8.54	13.06

2022 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest and financing expenses
= 3,328,692 ÷ 122,973 = 27.07

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 3,328,692 ÷ 154,073 = 21.60

Download chart

Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Albemarle Corp. adjusted interest coverage ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Albemarle Corp. (NYSE:ALB)

Analysis of Debt