Debt to Equity
since 2005
Calculation
Albemarle Corp., debt to equity, long-term trends, calculation
| Debt to equity | = | Long-term debt, including current portion1 | ÷ | Total Albemarle Corporation shareholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 0.40 | = | 3,217,100) | ÷ | 7,982,627) |
| Dec 31, 2021 | 0.43 | = | 2,394,239) | ÷ | 5,625,266) |
| Dec 31, 2020 | 0.84 | = | 3,572,058) | ÷ | 4,268,227) |
| Dec 31, 2019 | 0.78 | = | 3,050,257) | ÷ | 3,932,250) |
| Dec 31, 2018 | 0.48 | = | 1,705,210) | ÷ | 3,585,321) |
| Dec 31, 2017 | 0.50 | = | 1,837,372) | ÷ | 3,674,549) |
| Dec 31, 2016 | 0.62 | = | 2,369,262) | ÷ | 3,795,062) |
| Dec 31, 2015 | 1.18 | = | 3,852,019) | ÷ | 3,254,392) |
| Dec 31, 2014 | 2.16 | = | 2,934,131) | ÷ | 1,359,465) |
| Dec 31, 2013 | 0.66 | = | 1,078,864) | ÷ | 1,627,361) |
| Dec 31, 2012 | 0.38 | = | 699,288) | ÷ | 1,833,598) |
| Dec 31, 2011 | 0.48 | = | 763,673) | ÷ | 1,591,277) |
| Dec 31, 2010 | 0.61 | = | 860,910) | ÷ | 1,416,074) |
| Dec 31, 2009 | 0.67 | = | 812,713) | ÷ | 1,205,696) |
| Dec 31, 2008 | 0.87 | = | 932,264) | ÷ | 1,065,771) |
| Dec 31, 2007 | 0.57 | = | 723,938) | ÷ | 1,278,305) |
| Dec 31, 2006 | 0.71 | = | 732,590) | ÷ | 1,028,098) |
| Dec 31, 2005 | 0.90 | = | 833,453) | ÷ | 930,275) |
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 financial data reveals several notable trends in the company’s long-term debt, shareholders’ equity, and debt-to-equity ratio over the period from 2005 through 2022.
- Long-term Debt
- Long-term debt demonstrated fluctuations throughout the period. It started at approximately 833 million USD in 2005 and declined gradually until 2007, followed by an increase to over 930 million USD in 2008. Afterward, debt reduced to around 699 million USD by 2012 but sharply increased in 2013 to nearly 1.08 billion USD. A significant spike occurred in 2014, reaching 2.93 billion USD, and debt peaked further in 2015 at approximately 3.85 billion USD. Subsequently, the debt level fell sharply in 2016 and continued to decline through 2018. However, from 2019 onward, debt increased again, reaching about 3.22 billion USD by the end of 2022. These fluctuations highlight periods of both considerable borrowing and repayment activity, aligned with potential strategic investment or refinancing initiatives.
- Total Shareholders’ Equity
- Shareholders’ equity showed a steady upward trend over the entire period, beginning at about 930 million USD in 2005 and rising consistently with some acceleration after 2011. Despite a dip in 2013 and 2014, equity climbed sharply thereafter, surpassing 3.25 billion USD in 2015 and increasing to nearly 8 billion USD by 2022. The sustained equity growth indicates strong capital accumulation and retained earnings, reflecting likely profitability and reinvestment strategies enhancing the company’s net asset base.
- Debt to Equity Ratio
- The debt-to-equity ratio exhibits considerable variability, reflecting the interplay between debt and equity changes. Initially, the ratio decreased from 0.9 in 2005 to 0.38 by 2012, indicating a shift towards a stronger equity base relative to debt. Thereafter, the ratio surged dramatically to 2.16 in 2014, coinciding with the spike in debt, before declining sharply back to 0.5 in 2017 and maintaining a range between 0.4 and 0.78 thereafter. The declining trend in the later years suggests improved leverage management and a more conservative capital structure despite periods of increased borrowing.
Overall, the data suggests a company that has experienced cyclical borrowing activity, balanced by solid equity growth. The long-term trend points to strengthening financial stability, with a reduced reliance on debt financing relative to equity in recent periods. The variability in the debt-to-equity ratio underscores strategic financial management efforts to optimize capital structure in response to changing market and operational conditions.
Comparison to Competitors
Albemarle Corp., debt to equity, long-term trends, comparison to competitors
| Albemarle Corp. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Dec 31, 2022 | 0.40 | 0.45 | 3.41 |
| Dec 31, 2021 | 0.43 | 0.32 | 3.95 |
| Dec 31, 2020 | 0.84 | 0.34 | 2.30 |
| Dec 31, 2019 | 0.78 | 0.28 | 2.11 |
| Dec 31, 2018 | 0.48 | 0.30 | 2.50 |
| Dec 31, 2017 | 0.50 | 1.50 | 2.85 |
| Dec 31, 2016 | 0.62 | 1.90 | 1.04 |
| Dec 31, 2015 | 1.18 | 2.10 | 2.26 |
| Dec 31, 2014 | 2.16 | 1.65 | 1.81 |
| Dec 31, 2013 | 0.66 | 1.33 | 0.97 |
| Dec 31, 2012 | 0.38 | 1.21 | 0.95 |
| Dec 31, 2011 | 0.48 | 1.20 | 0.65 |
| Dec 31, 2010 | 0.61 | 0.96 | 0.65 |
| Dec 31, 2009 | 0.67 | 0.95 | 0.55 |
| Dec 31, 2008 | 0.87 | 1.25 | 0.52 |
| Dec 31, 2007 | 0.57 | 0.82 | 0.54 |
| Dec 31, 2006 | 0.71 | 0.70 | 0.44 |
| Dec 31, 2005 | 0.90 | 0.88 | 0.36 |
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).
Comparison to Sector (Chemicals)
Albemarle Corp., debt to equity, long-term trends, comparison to sector (chemicals)
| Albemarle Corp. | Chemicals | |
|---|---|---|
| Dec 31, 2022 | 0.40 | 0.66 |
| Dec 31, 2021 | 0.43 | 0.51 |
| Dec 31, 2020 | 0.84 | 0.48 |
| Dec 31, 2019 | 0.78 | 0.43 |
| Dec 31, 2018 | 0.48 | 0.45 |
| Dec 31, 2017 | 0.50 | 2.01 |
| Dec 31, 2016 | 0.62 | 1.66 |
| Dec 31, 2015 | 1.18 | 2.13 |
| Dec 31, 2014 | 2.16 | 1.67 |
| Dec 31, 2013 | 0.66 | 1.26 |
| Dec 31, 2012 | 0.38 | 1.15 |
| Dec 31, 2011 | 0.48 | 1.08 |
| Dec 31, 2010 | 0.61 | 0.89 |
| Dec 31, 2009 | 0.67 | 0.86 |
| Dec 31, 2008 | 0.87 | 1.04 |
| Dec 31, 2007 | 0.57 | 0.74 |
| Dec 31, 2006 | 0.71 | 0.62 |
| Dec 31, 2005 | 0.90 | 0.72 |
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), 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).
Comparison to Industry (Materials)
Albemarle Corp., debt to equity, long-term trends, comparison to industry (materials)
| Albemarle Corp. | Materials | |
|---|---|---|
| Dec 31, 2022 | 0.40 | 0.67 |
| Dec 31, 2021 | 0.43 | 0.55 |
| Dec 31, 2020 | 0.84 | 0.56 |
| Dec 31, 2019 | 0.78 | 0.52 |
| Dec 31, 2018 | 0.48 | 0.55 |
| Dec 31, 2017 | 0.50 | 1.85 |
| Dec 31, 2016 | 0.62 | 2.12 |
| Dec 31, 2015 | 1.18 | 2.42 |
| Dec 31, 2014 | 2.16 | 1.21 |
| Dec 31, 2013 | 0.66 | 1.07 |
| Dec 31, 2012 | 0.38 | 0.50 |
| Dec 31, 2011 | 0.48 | 0.49 |
| Dec 31, 2010 | 0.61 | 0.57 |
| Dec 31, 2009 | 0.67 | 0.77 |
| Dec 31, 2008 | 0.87 | 1.16 |
| Dec 31, 2007 | 0.57 | 0.49 |
| Dec 31, 2006 | 0.71 | 0.53 |
| Dec 31, 2005 | 0.90 | 0.71 |
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).