Stock Analysis on Net

Albemarle Corp. (NYSE:ALB)

$22.49

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

Current Ratio
since 2005

Microsoft Excel

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Calculation

Albemarle Corp., current ratio, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in thousands


The analysis of the given financial data reveals discernible trends in the liquidity position of the company over the years from 2005 through 2022. The focus is on current assets, current liabilities, and the current ratio, which are critical indicators of short-term financial health.

Current Assets
Current assets exhibited a general upward trajectory with fluctuations. Starting at 873,663 thousand US dollars in 2005, there was steady growth through 2008, reaching over 1.17 million. Minor declines and recoveries were noted between 2009 and 2014, with an exceptional peak in 2014 at approximately 3.35 million. Subsequent years showed volatility, with a significant fall in 2015 followed by another peak in 2016 at 3.31 million. Post-2016, current assets decreased until 2019, then fluctuated, increasing sharply to 5.19 million by the end of 2022.
Current Liabilities
Current liabilities also fluctuated but with less pronounced peaks compared to current assets. They started at 421,917 thousand US dollars in 2005 and increased gradually until 2014, where a substantial rise was noted to over 1.14 million. The liabilities escalated continuously reaching 1.81 million in 2020 and further climbing to over 2.74 million by 2022, indicating growing short-term obligations.
Current Ratio
The current ratio, representing the company’s ability to cover short-term liabilities with short-term assets, ranged from a low of 1.07 to a high of 3.7 during the period reviewed. Early years showed a generally healthy ratio above 2.0, peaking at 3.7 in 2010, which suggests strong liquidity at that time. However, following a dramatic drop to 1.13 in 2014, the ratio recovered somewhat but remained below 2.0 from 2018 onwards, hitting a low point of 1.07 in 2021 before rising again to 1.89 in 2022. This trend signals a reduction in liquidity buffer from earlier periods with tight working capital management in recent years.

In summary, the data indicates that while current assets have experienced significant growth with volatility, current liabilities have increased more steadily, leading to a decline in the current ratio over time. The company's liquidity position appears to have weakened in the later years, reflecting narrower cushion to cover short-term debts. The sharp rises in current assets and liabilities in certain years warrant further investigation to understand the underlying operational or financial activities causing these changes.


Comparison to Competitors


Comparison to Sector (Chemicals)


Comparison to Industry (Materials)