Stock Analysis on Net
AI tokens
Stock Analysis on Net

Albemarle Corp. (NYSE:ALB)

This company has been moved to the archive! The financial data has not been updated since May 3, 2023.

Common-Size Income Statement

Albemarle Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net sales 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -58.00 -70.01 -68.20 -64.96 -63.93
Gross profit 42.00% 29.99% 31.80% 35.04% 36.07%
Selling, general and administrative expenses -7.16 -13.27 -13.74 -14.86 -13.22
Research and development expenses -0.98 -1.62 -1.89 -1.62 -2.08
Gain (loss) on sale of business/interest in properties, net -0.11 8.89 0.00 0.00 6.23
Operating profit 33.74% 23.99% 16.17% 18.56% 27.01%
Interest and financing expenses -1.68 -1.85 -2.34 -1.61 -1.55
Other income (expenses), net 1.18 -18.13 -1.89 -1.27 -1.91
Income before income taxes and equity in net income of unconsolidated investments 33.24% 4.02% 11.94% 15.68% 23.55%
Income tax expense -5.34 -0.88 -1.74 -2.46 -4.29
Income before equity in net income of unconsolidated investments 27.91% 3.13% 10.20% 13.23% 19.26%
Equity in net income of unconsolidated investments, net of tax 10.55 2.88 4.08 3.61 2.64
Net income 38.46% 6.01% 14.27% 16.84% 21.90%
Net income attributable to noncontrolling interests -1.71 -2.29 -2.26 -1.98 -1.35
Net income attributable to Albemarle Corporation 36.75% 3.72% 12.01% 14.86% 20.55%

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).

The financial performance from 2018 to 2022 is characterized by a period of margin compression followed by a substantial expansion in profitability. While the years between 2019 and 2021 showed a steady decline in gross and operating margins, 2022 marked a significant reversal, achieving the highest levels of efficiency and net income within the analyzed period.

Gross Profitability and Cost Management
A progressive increase in the cost of goods sold is observed from 2018 (-63.93% of net sales) through 2021 (-70.01%), which resulted in a corresponding decline in gross profit from 36.07% to 29.99%. However, 2022 shows a sharp improvement, with the cost of goods sold falling to -58.00%, leading to a peak gross profit margin of 42.00%.
Operational Efficiency
Selling, general and administrative expenses remained relatively stable between 13.22% and 14.86% from 2018 to 2021, before dropping significantly to 7.16% in 2022. Research and development expenses followed a similar downward trajectory, decreasing from 2.08% in 2018 to 0.98% in 2022. These reductions in operating overhead contributed to the expansion of the operating profit, which reached 33.74% in 2022.
Non-Operating Items and Financial Volatility
Interest and financing expenses remained consistent, fluctuating within a narrow band between -1.55% and -2.34%. A significant anomaly is observed in 2021, where other income (expenses), net, plummeted to -18.13% of net sales, creating a substantial drag on the pre-tax income. This specific volatility explains the sharp dip in profitability for that year despite a recovery in operating profit.
Net Income Trends
Net income attributable to the corporation exhibited high volatility, declining from 20.55% in 2018 to a low of 3.72% in 2021. This downward trend was reversed in 2022, with net income attributable to the corporation surging to 36.75%. This final increase was supported not only by improved operating margins but also by a significant rise in equity in net income from unconsolidated investments, which grew to 10.55% of net sales in 2022.

AI Ask an analyst for more

My previous chats

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?