Operating Profit Margin
since 2005
Calculation
Albemarle Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating profit1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 33.74% | = | 100 | × | 2,470,061) | ÷ | 7,320,104) |
| Dec 31, 2021 | 23.99% | = | 100 | × | 798,434) | ÷ | 3,327,957) |
| Dec 31, 2020 | 16.17% | = | 100 | × | 505,812) | ÷ | 3,128,909) |
| Dec 31, 2019 | 18.56% | = | 100 | × | 666,123) | ÷ | 3,589,427) |
| Dec 31, 2018 | 27.01% | = | 100 | × | 911,540) | ÷ | 3,374,950) |
| Dec 31, 2017 | 19.13% | = | 100 | × | 587,749) | ÷ | 3,071,976) |
| Dec 31, 2016 | 21.46% | = | 100 | × | 574,551) | ÷ | 2,677,203) |
| Dec 31, 2015 | 12.12% | = | 100 | × | 442,435) | ÷ | 3,651,335) |
| Dec 31, 2014 | 11.09% | = | 100 | × | 271,298) | ÷ | 2,445,548) |
| Dec 31, 2013 | 22.28% | = | 100 | × | 582,909) | ÷ | 2,616,416) |
| Dec 31, 2012 | 14.79% | = | 100 | × | 406,164) | ÷ | 2,745,420) |
| Dec 31, 2011 | 20.49% | = | 100 | × | 587,840) | ÷ | 2,869,005) |
| Dec 31, 2010 | 17.56% | = | 100 | × | 414,848) | ÷ | 2,362,764) |
| Dec 31, 2009 | 9.29% | = | 100 | × | 186,280) | ÷ | 2,005,394) |
| Dec 31, 2008 | 8.95% | = | 100 | × | 220,917) | ÷ | 2,467,115) |
| Dec 31, 2007 | 13.26% | = | 100 | × | 309,887) | ÷ | 2,336,187) |
| Dec 31, 2006 | 7.49% | = | 100 | × | 177,484) | ÷ | 2,368,506) |
| Dec 31, 2005 | 7.78% | = | 100 | × | 163,896) | ÷ | 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 operating profit margin demonstrates a long-term upward trajectory from 2005 to 2022, evolving from single-digit percentages to a peak exceeding 33%. This progression is characterized by distinct phases of volatility followed by significant structural growth in profitability.
- Early Period Performance (2005–2009)
- During the initial five years, operating profit margins remained relatively low, fluctuating between 7.49% and 13.26%. A temporary peak in 2007 was followed by a contraction in 2008, indicating a period of limited margin stability and lower overall operating efficiency.
- Intermediate Expansion and Volatility (2010–2017)
- A shift toward higher profitability began in 2010, with margins consistently reaching higher levels than the previous period, often exceeding 15%. However, this phase was marked by notable instability, specifically a sharp decline to 11.09% in 2014, before recovering to 21.46% by 2016.
- Accelerated Margin Growth (2018–2022)
- The most recent period shows a significant acceleration in operating efficiency. After a brief decline between 2019 and 2020, the margin rose sharply to reach an all-time high of 33.74% in 2022. This period represents a substantial departure from historical norms, reflecting a marked increase in the conversion of sales into operating profit.
- Analysis of Scale and Profitability Correlation
- The data reveals a strong correlation between the scaling of net sales and the expansion of the operating margin in the final years. In 2022, net sales increased to 7.32 billion US dollars, while operating profit grew to 2.47 billion US dollars. The fact that the operating profit margin peaked simultaneously with record sales suggests that the growth was driven not only by volume but also by enhanced pricing power or significant operational efficiencies.
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Comparison to Competitors
Albemarle Corp., operating profit margin, long-term trends, comparison to competitors
| Albemarle Corp. | Linde plc | |
|---|---|---|
| Dec 31, 2022 | 33.74% | 16.09% |
| Dec 31, 2021 | 23.99% | 16.19% |
| Dec 31, 2020 | 16.17% | 12.19% |
| Dec 31, 2019 | 18.56% | 10.39% |
| Dec 31, 2018 | 27.01% | 35.21% |
| Dec 31, 2017 | 19.13% | 21.40% |
| Dec 31, 2016 | 21.46% | 21.25% |
| Dec 31, 2015 | 12.12% | 21.54% |
| Dec 31, 2014 | 11.09% | 21.25% |
| Dec 31, 2013 | 22.28% | 22.01% |
| Dec 31, 2012 | 14.79% | 21.71% |
| Dec 31, 2011 | 20.49% | 21.93% |
| Dec 31, 2010 | 17.56% | 20.58% |
| Dec 31, 2009 | 9.29% | 17.59% |
| Dec 31, 2008 | 8.95% | 17.44% |
| Dec 31, 2007 | 13.26% | 19.00% |
| Dec 31, 2006 | 7.49% | 18.25% |
| Dec 31, 2005 | 7.78% | 16.89% |
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).