Net Profit Margin
since 2005
Calculation
Albemarle Corp., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income attributable to Albemarle Corporation1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 36.75% | = | 100 | × | 2,689,816) | ÷ | 7,320,104) |
| Dec 31, 2021 | 3.72% | = | 100 | × | 123,672) | ÷ | 3,327,957) |
| Dec 31, 2020 | 12.01% | = | 100 | × | 375,764) | ÷ | 3,128,909) |
| Dec 31, 2019 | 14.86% | = | 100 | × | 533,228) | ÷ | 3,589,427) |
| Dec 31, 2018 | 20.55% | = | 100 | × | 693,562) | ÷ | 3,374,950) |
| Dec 31, 2017 | 1.79% | = | 100 | × | 54,850) | ÷ | 3,071,976) |
| Dec 31, 2016 | 24.04% | = | 100 | × | 643,675) | ÷ | 2,677,203) |
| Dec 31, 2015 | 9.17% | = | 100 | × | 334,906) | ÷ | 3,651,335) |
| Dec 31, 2014 | 5.45% | = | 100 | × | 133,316) | ÷ | 2,445,548) |
| Dec 31, 2013 | 15.79% | = | 100 | × | 413,171) | ÷ | 2,616,416) |
| Dec 31, 2012 | 11.35% | = | 100 | × | 311,536) | ÷ | 2,745,420) |
| Dec 31, 2011 | 15.21% | = | 100 | × | 436,280) | ÷ | 2,869,005) |
| Dec 31, 2010 | 13.70% | = | 100 | × | 323,720) | ÷ | 2,362,764) |
| Dec 31, 2009 | 8.89% | = | 100 | × | 178,368) | ÷ | 2,005,394) |
| Dec 31, 2008 | 7.87% | = | 100 | × | 194,202) | ÷ | 2,467,115) |
| Dec 31, 2007 | 9.83% | = | 100 | × | 229,690) | ÷ | 2,336,187) |
| Dec 31, 2006 | 6.04% | = | 100 | × | 142,969) | ÷ | 2,368,506) |
| Dec 31, 2005 | 5.45% | = | 100 | × | 114,867) | ÷ | 2,107,499) |
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 net profit margin of Albemarle Corporation between 2005 and 2022 is characterized by significant volatility, featuring several cycles of expansion and sharp contraction, culminating in a period of exceptional profitability in 2022.
- Early Growth and Stabilization (2005–2013)
- During the initial period from 2005 to 2013, a general upward trajectory in profitability is observed. The net profit margin climbed from 5.45% in 2005 to a peak of 15.79% in 2013. While minor fluctuations occurred—most notably a dip to 7.87% in 2008—the overall trend indicates a steady improvement in the conversion of net sales into net income.
- Period of High Volatility (2014–2021)
- The subsequent period is marked by extreme instability in margins. A sharp decline occurred in 2014, with the margin returning to 5.45%. This was followed by a rapid recovery to 24.04% in 2016, which was immediately succeeded by a collapse to 1.79% in 2017, the lowest point in the analyzed timeframe. Profitability rebounded strongly in 2018 to 20.55%, before entering a multi-year decline that reached 3.72% by 2021.
- Exceptional Margin Expansion (2022)
- The fiscal year 2022 represents a significant outlier in the financial trend. Net profit margin expanded aggressively to 36.75%, the highest level recorded since 2005. This surge coincided with a substantial increase in net sales, which rose from approximately 3.33 billion USD in 2021 to 7.32 billion USD in 2022, suggesting a dramatic increase in pricing power or operational efficiency.
Analysis of the relationship between net sales and net income reveals that while sales grew relatively steadily over the long term, net income experienced erratic swings. The convergence of record-high sales and record-high margins in 2022 indicates a fundamental shift in the profitability profile compared to the preceding seventeen years.
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Comparison to Competitors
Albemarle Corp., net profit margin, long-term trends, comparison to competitors
| Albemarle Corp. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Dec 31, 2022 | 36.75% | 12.43% | 9.12% |
| Dec 31, 2021 | 3.72% | 12.42% | 9.35% |
| Dec 31, 2020 | 12.01% | 9.18% | 11.06% |
| Dec 31, 2019 | 14.86% | 8.09% | 8.61% |
| Dec 31, 2018 | 20.55% | 29.40% | 6.32% |
| Dec 31, 2017 | 1.79% | 10.90% | 11.83% |
| Dec 31, 2016 | 24.04% | 14.24% | 9.55% |
| Dec 31, 2015 | 9.17% | 14.36% | 9.29% |
| Dec 31, 2014 | 5.45% | 13.80% | 7.78% |
| Dec 31, 2013 | 15.79% | 14.72% | 7.39% |
| Dec 31, 2012 | 11.35% | 15.07% | 6.62% |
| Dec 31, 2011 | 15.21% | 14.86% | 5.04% |
| Dec 31, 2010 | 13.70% | 11.81% | 5.95% |
| Dec 31, 2009 | 8.89% | 14.00% | 6.14% |
| Dec 31, 2008 | 7.87% | 11.22% | 5.98% |
| Dec 31, 2007 | 9.83% | 12.52% | 7.69% |
| Dec 31, 2006 | 6.04% | 11.87% | 7.38% |
| Dec 31, 2005 | 5.45% | 9.48% | 6.44% |
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), 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., net profit margin, long-term trends, comparison to sector (chemicals)
| Albemarle Corp. | Chemicals | |
|---|---|---|
| Dec 31, 2022 | 36.75% | 11.11% |
| Dec 31, 2021 | 3.72% | 11.22% |
| Dec 31, 2020 | 12.01% | 9.94% |
| Dec 31, 2019 | 14.86% | 8.29% |
| Dec 31, 2018 | 20.55% | 16.93% |
| Dec 31, 2017 | 1.79% | 11.43% |
| Dec 31, 2016 | 24.04% | 11.76% |
| Dec 31, 2015 | 9.17% | 11.76% |
| Dec 31, 2014 | 5.45% | 10.94% |
| Dec 31, 2013 | 15.79% | 11.34% |
| Dec 31, 2012 | 11.35% | 11.19% |
| Dec 31, 2011 | 15.21% | 10.56% |
| Dec 31, 2010 | 13.70% | 9.26% |
| Dec 31, 2009 | 8.89% | 10.53% |
| Dec 31, 2008 | 7.87% | 8.99% |
| Dec 31, 2007 | 9.83% | 10.30% |
| Dec 31, 2006 | 6.04% | 9.69% |
| Dec 31, 2005 | 5.45% | 8.01% |
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., net profit margin, long-term trends, comparison to industry (materials)
| Albemarle Corp. | Materials | |
|---|---|---|
| Dec 31, 2022 | 36.75% | 12.31% |
| Dec 31, 2021 | 3.72% | 13.59% |
| Dec 31, 2020 | 12.01% | 8.58% |
| Dec 31, 2019 | 14.86% | 5.93% |
| Dec 31, 2018 | 20.55% | 15.85% |
| Dec 31, 2017 | 1.79% | 11.29% |
| Dec 31, 2016 | 24.04% | -4.09% |
| Dec 31, 2015 | 9.17% | -25.36% |
| Dec 31, 2014 | 5.45% | 2.79% |
| Dec 31, 2013 | 15.79% | 12.00% |
| Dec 31, 2012 | 11.35% | 13.84% |
| Dec 31, 2011 | 15.21% | 16.32% |
| Dec 31, 2010 | 13.70% | 16.25% |
| Dec 31, 2009 | 8.89% | 14.28% |
| Dec 31, 2008 | 7.87% | -25.65% |
| Dec 31, 2007 | 9.83% | 13.89% |
| Dec 31, 2006 | 6.04% | 13.78% |
| Dec 31, 2005 | 5.45% | 11.48% |
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).