Inventory Disclosure
Adjustment to Inventory: Conversion from LIFO to FIFO
Adjusted Financial Ratios: LIFO vs. FIFO (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Albemarle Corp., balance sheet: inventory

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Finished goods	1,679,473)	473,836)	454,162)	495,639)	482,355)
Raw materials and work in process	296,998)	259,221)	219,896)	205,781)	158,290)
Stores, supplies and other	99,560)	79,863)	76,179)	67,564)	59,895)
Inventories	2,076,031)	812,920)	750,237)	768,984)	700,540)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Inventories	Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.	Albemarle Corp. inventories increased from 2020 to 2021 and from 2021 to 2022.

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Inventories
Inventories at LIFO (as reported)	2,076,031)	812,920)	750,237)	768,984)	700,540)
Add: Inventory LIFO reserve	57,900)	45,300)	29,700)	30,800)	32,800)
Inventories at FIFO (adjusted)	2,133,931)	858,220)	779,937)	799,784)	733,340)
Adjustment to Current Assets
Current assets (as reported)	5,186,917)	2,007,981)	2,206,184)	2,225,109)	1,998,421)
Add: Inventory LIFO reserve	57,900)	45,300)	29,700)	30,800)	32,800)
Current assets (adjusted)	5,244,817)	2,053,281)	2,235,884)	2,255,909)	2,031,221)
Adjustment to Total Assets
Total assets (as reported)	15,456,522)	10,974,118)	10,450,946)	9,860,863)	7,581,674)
Add: Inventory LIFO reserve	57,900)	45,300)	29,700)	30,800)	32,800)
Total assets (adjusted)	15,514,422)	11,019,418)	10,480,646)	9,891,663)	7,614,474)
Adjustment to Total Albemarle Corporation Shareholders’ Equity
Total Albemarle Corporation shareholders’ equity (as reported)	7,982,627)	5,625,266)	4,268,227)	3,932,250)	3,585,321)
Add: Inventory LIFO reserve	57,900)	45,300)	29,700)	30,800)	32,800)
Total Albemarle Corporation shareholders’ equity (adjusted)	8,040,527)	5,670,566)	4,297,927)	3,963,050)	3,618,121)
Adjustment to Net Income Attributable To Albemarle Corporation
Net income attributable to Albemarle Corporation (as reported)	2,689,816)	123,672)	375,764)	533,228)	693,562)
Add: Increase (decrease) in inventory LIFO reserve	12,600)	15,600)	(1,100)	(2,000)	(300)
Net income attributable to Albemarle Corporation (adjusted)	2,702,416)	139,272)	374,664)	531,228)	693,262)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Albemarle Corp. inventory value on Dec 31, 2022 would be $2,133,931) (in thousands) if the FIFO inventory method was used instead of LIFO. Albemarle Corp. inventories, valued on a LIFO basis, on Dec 31, 2022 were $2,076,031). Albemarle Corp. inventories would have been $57,900) higher than reported on Dec 31, 2022 if the FIFO method had been used instead.

Albemarle Corp., Financial Data: Reported vs. Adjusted

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Albemarle Corp., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Current Ratio
Reported current ratio (LIFO)	1.89	1.07	1.22	1.58	1.69
Adjusted current ratio (FIFO)	1.91	1.10	1.24	1.60	1.72
Net Profit Margin
Reported net profit margin (LIFO)	36.75%	3.72%	12.01%	14.86%	20.55%
Adjusted net profit margin (FIFO)	36.92%	4.18%	11.97%	14.80%	20.54%
Total Asset Turnover
Reported total asset turnover (LIFO)	0.47	0.30	0.30	0.36	0.45
Adjusted total asset turnover (FIFO)	0.47	0.30	0.30	0.36	0.44
Financial Leverage
Reported financial leverage (LIFO)	1.94	1.95	2.45	2.51	2.11
Adjusted financial leverage (FIFO)	1.93	1.94	2.44	2.50	2.10
Return on Equity (ROE)
Reported ROE (LIFO)	33.70%	2.20%	8.80%	13.56%	19.34%
Adjusted ROE (FIFO)	33.61%	2.46%	8.72%	13.40%	19.16%
Return on Assets (ROA)
Reported ROA (LIFO)	17.40%	1.13%	3.60%	5.41%	9.15%
Adjusted ROA (FIFO)	17.42%	1.26%	3.57%	5.37%	9.10%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Albemarle Corp. adjusted current ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Albemarle Corp. adjusted net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Albemarle Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Albemarle Corp. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Albemarle Corp. adjusted ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Albemarle Corp. adjusted ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Albemarle Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Current assets	5,186,917)	2,007,981)	2,206,184)	2,225,109)	1,998,421)
Current liabilities	2,741,015)	1,874,335)	1,801,849)	1,408,996)	1,183,173)
Liquidity Ratio
Current ratio¹	1.89	1.07	1.22	1.58	1.69
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted current assets	5,244,817)	2,053,281)	2,235,884)	2,255,909)	2,031,221)
Current liabilities	2,741,015)	1,874,335)	1,801,849)	1,408,996)	1,183,173)
Liquidity Ratio
Adjusted current ratio²	1.91	1.10	1.24	1.60	1.72

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 5,186,917 ÷ 2,741,015 = 1.89

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 5,244,817 ÷ 2,741,015 = 1.91

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Albemarle Corp. adjusted current ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Albemarle Corporation	2,689,816)	123,672)	375,764)	533,228)	693,562)
Net sales	7,320,104)	3,327,957)	3,128,909)	3,589,427)	3,374,950)
Profitability Ratio
Net profit margin¹	36.75%	3.72%	12.01%	14.86%	20.55%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Albemarle Corporation	2,702,416)	139,272)	374,664)	531,228)	693,262)
Net sales	7,320,104)	3,327,957)	3,128,909)	3,589,427)	3,374,950)
Profitability Ratio
Adjusted net profit margin²	36.92%	4.18%	11.97%	14.80%	20.54%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Net profit margin = 100 × Net income attributable to Albemarle Corporation ÷ Net sales
= 100 × 2,689,816 ÷ 7,320,104 = 36.75%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Albemarle Corporation ÷ Net sales
= 100 × 2,702,416 ÷ 7,320,104 = 36.92%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Albemarle Corp. adjusted net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net sales	7,320,104)	3,327,957)	3,128,909)	3,589,427)	3,374,950)
Total assets	15,456,522)	10,974,118)	10,450,946)	9,860,863)	7,581,674)
Activity Ratio
Total asset turnover¹	0.47	0.30	0.30	0.36	0.45
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Net sales	7,320,104)	3,327,957)	3,128,909)	3,589,427)	3,374,950)
Adjusted total assets	15,514,422)	11,019,418)	10,480,646)	9,891,663)	7,614,474)
Activity Ratio
Adjusted total asset turnover²	0.47	0.30	0.30	0.36	0.44

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 7,320,104 ÷ 15,456,522 = 0.47

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 7,320,104 ÷ 15,514,422 = 0.47

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Albemarle Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets	15,456,522)	10,974,118)	10,450,946)	9,860,863)	7,581,674)
Total Albemarle Corporation shareholders’ equity	7,982,627)	5,625,266)	4,268,227)	3,932,250)	3,585,321)
Solvency Ratio
Financial leverage¹	1.94	1.95	2.45	2.51	2.11
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted total assets	15,514,422)	11,019,418)	10,480,646)	9,891,663)	7,614,474)
Adjusted total Albemarle Corporation shareholders’ equity	8,040,527)	5,670,566)	4,297,927)	3,963,050)	3,618,121)
Solvency Ratio
Adjusted financial leverage²	1.93	1.94	2.44	2.50	2.10

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Financial leverage = Total assets ÷ Total Albemarle Corporation shareholders’ equity
= 15,456,522 ÷ 7,982,627 = 1.94

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Albemarle Corporation shareholders’ equity
= 15,514,422 ÷ 8,040,527 = 1.93

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Albemarle Corp. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Albemarle Corporation	2,689,816)	123,672)	375,764)	533,228)	693,562)
Total Albemarle Corporation shareholders’ equity	7,982,627)	5,625,266)	4,268,227)	3,932,250)	3,585,321)
Profitability Ratio
ROE¹	33.70%	2.20%	8.80%	13.56%	19.34%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Albemarle Corporation	2,702,416)	139,272)	374,664)	531,228)	693,262)
Adjusted total Albemarle Corporation shareholders’ equity	8,040,527)	5,670,566)	4,297,927)	3,963,050)	3,618,121)
Profitability Ratio
Adjusted ROE²	33.61%	2.46%	8.72%	13.40%	19.16%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROE = 100 × Net income attributable to Albemarle Corporation ÷ Total Albemarle Corporation shareholders’ equity
= 100 × 2,689,816 ÷ 7,982,627 = 33.70%

² Adjusted ROE = 100 × Adjusted net income attributable to Albemarle Corporation ÷ Adjusted total Albemarle Corporation shareholders’ equity
= 100 × 2,702,416 ÷ 8,040,527 = 33.61%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Albemarle Corp. adjusted ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Albemarle Corporation	2,689,816)	123,672)	375,764)	533,228)	693,562)
Total assets	15,456,522)	10,974,118)	10,450,946)	9,860,863)	7,581,674)
Profitability Ratio
ROA¹	17.40%	1.13%	3.60%	5.41%	9.15%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Albemarle Corporation	2,702,416)	139,272)	374,664)	531,228)	693,262)
Adjusted total assets	15,514,422)	11,019,418)	10,480,646)	9,891,663)	7,614,474)
Profitability Ratio
Adjusted ROA²	17.42%	1.26%	3.57%	5.37%	9.10%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROA = 100 × Net income attributable to Albemarle Corporation ÷ Total assets
= 100 × 2,689,816 ÷ 15,456,522 = 17.40%

² Adjusted ROA = 100 × Adjusted net income attributable to Albemarle Corporation ÷ Adjusted total assets
= 100 × 2,702,416 ÷ 15,514,422 = 17.42%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Albemarle Corp. adjusted ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Albemarle Corp. (NYSE:ALB)

Analysis of Inventory

Inventory Disclosure

Adjustment to Inventory: Conversion from LIFO to FIFO

Albemarle Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

Albemarle Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)