Return on Assets (ROA)
since 2005
Calculation
Albemarle Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income attributable to Albemarle Corporation1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 17.40% | = | 100 | × | 2,689,816) | ÷ | 15,456,522) |
| Dec 31, 2021 | 1.13% | = | 100 | × | 123,672) | ÷ | 10,974,118) |
| Dec 31, 2020 | 3.60% | = | 100 | × | 375,764) | ÷ | 10,450,946) |
| Dec 31, 2019 | 5.41% | = | 100 | × | 533,228) | ÷ | 9,860,863) |
| Dec 31, 2018 | 9.15% | = | 100 | × | 693,562) | ÷ | 7,581,674) |
| Dec 31, 2017 | 0.71% | = | 100 | × | 54,850) | ÷ | 7,750,772) |
| Dec 31, 2016 | 7.89% | = | 100 | × | 643,675) | ÷ | 8,161,207) |
| Dec 31, 2015 | 3.48% | = | 100 | × | 334,906) | ÷ | 9,615,014) |
| Dec 31, 2014 | 2.55% | = | 100 | × | 133,316) | ÷ | 5,223,103) |
| Dec 31, 2013 | 11.53% | = | 100 | × | 413,171) | ÷ | 3,584,797) |
| Dec 31, 2012 | 9.06% | = | 100 | × | 311,536) | ÷ | 3,437,291) |
| Dec 31, 2011 | 13.62% | = | 100 | × | 436,280) | ÷ | 3,203,824) |
| Dec 31, 2010 | 10.55% | = | 100 | × | 323,720) | ÷ | 3,068,081) |
| Dec 31, 2009 | 6.44% | = | 100 | × | 178,368) | ÷ | 2,771,557) |
| Dec 31, 2008 | 6.76% | = | 100 | × | 194,202) | ÷ | 2,872,717) |
| Dec 31, 2007 | 8.11% | = | 100 | × | 229,690) | ÷ | 2,830,450) |
| Dec 31, 2006 | 5.65% | = | 100 | × | 142,969) | ÷ | 2,530,368) |
| Dec 31, 2005 | 4.51% | = | 100 | × | 114,867) | ÷ | 2,547,243) |
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 Return on Assets (ROA) from 2005 to 2022 reveals a trajectory characterized by significant volatility, a substantial expansion of the balance sheet, and two distinct peaks in capital efficiency.
- Early Period of Efficiency Gains (2005–2011)
- Between 2005 and 2011, a consistent upward trend in ROA is observed, rising from 4.51% to a peak of 13.62%. This improvement was driven by strong growth in net income, which increased from 114.8 million to 436.3 million, while total assets grew at a more moderate pace, moving from 2.5 billion to 3.2 billion.
- Asset Expansion and Margin Compression (2012–2017)
- A period of aggressive asset growth began in 2014, with total assets increasing from 3.58 billion in 2013 to 9.62 billion by 2015. This expansion of the asset base coincided with a sharp decline in ROA, which fell to 2.55% in 2014 and reached a minimum of 0.71% in 2017. The data indicates that the increase in total assets during this window significantly outpaced the generation of net income, leading to diminished asset productivity.
- Recent Volatility and Peak Performance (2018–2022)
- After the 2017 trough, ROA experienced a brief recovery to 9.15% in 2018 before declining again to 1.13% by 2021. However, 2022 represents a significant outlier in the dataset. While total assets reached their highest level at 15.46 billion, net income surged to 2.69 billion. This exceptional increase in earnings resulted in an ROA of 17.40%, marking the highest level of asset efficiency recorded since 2005.
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Comparison to Competitors
Albemarle Corp., ROA, long-term trends, comparison to competitors
| Albemarle Corp. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Dec 31, 2022 | 17.40% | 5.21% | 8.94% |
| Dec 31, 2021 | 1.13% | 4.69% | 9.02% |
| Dec 31, 2020 | 3.60% | 2.83% | 9.95% |
| Dec 31, 2019 | 5.41% | 2.64% | 7.52% |
| Dec 31, 2018 | 9.15% | 4.69% | 5.79% |
| Dec 31, 2017 | 0.71% | 6.10% | 8.88% |
| Dec 31, 2016 | 7.89% | 7.76% | 16.77% |
| Dec 31, 2015 | 3.48% | 8.44% | 18.20% |
| Dec 31, 2014 | 2.55% | 8.55% | 15.17% |
| Dec 31, 2013 | 11.53% | 8.66% | 11.79% |
| Dec 31, 2012 | 9.06% | 9.35% | 10.12% |
| Dec 31, 2011 | 13.62% | 10.22% | 8.45% |
| Dec 31, 2010 | 10.55% | 7.82% | 8.95% |
| Dec 31, 2009 | 6.44% | 8.76% | 10.08% |
| Dec 31, 2008 | 6.76% | 9.28% | 10.80% |
| Dec 31, 2007 | 8.11% | 8.80% | 12.68% |
| Dec 31, 2006 | 5.65% | 8.90% | 11.53% |
| Dec 31, 2005 | 4.51% | 6.92% | 10.60% |
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., ROA, long-term trends, comparison to sector (chemicals)
| Albemarle Corp. | Chemicals | |
|---|---|---|
| Dec 31, 2022 | 17.40% | 6.03% |
| Dec 31, 2021 | 1.13% | 5.56% |
| Dec 31, 2020 | 3.60% | 4.17% |
| Dec 31, 2019 | 5.41% | 3.57% |
| Dec 31, 2018 | 9.15% | 4.88% |
| Dec 31, 2017 | 0.71% | 7.47% |
| Dec 31, 2016 | 7.89% | 10.09% |
| Dec 31, 2015 | 3.48% | 10.79% |
| Dec 31, 2014 | 2.55% | 10.04% |
| Dec 31, 2013 | 11.53% | 9.41% |
| Dec 31, 2012 | 9.06% | 9.55% |
| Dec 31, 2011 | 13.62% | 9.79% |
| Dec 31, 2010 | 10.55% | 8.11% |
| Dec 31, 2009 | 6.44% | 9.07% |
| Dec 31, 2008 | 6.76% | 9.66% |
| Dec 31, 2007 | 8.11% | 9.83% |
| Dec 31, 2006 | 5.65% | 9.72% |
| Dec 31, 2005 | 4.51% | 8.00% |
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., ROA, long-term trends, comparison to industry (materials)
| Albemarle Corp. | Materials | |
|---|---|---|
| Dec 31, 2022 | 17.40% | 6.28% |
| Dec 31, 2021 | 1.13% | 6.65% |
| Dec 31, 2020 | 3.60% | 3.40% |
| Dec 31, 2019 | 5.41% | 2.43% |
| Dec 31, 2018 | 9.15% | 5.23% |
| Dec 31, 2017 | 0.71% | 6.22% |
| Dec 31, 2016 | 7.89% | -2.40% |
| Dec 31, 2015 | 3.48% | -13.63% |
| Dec 31, 2014 | 2.55% | 1.48% |
| Dec 31, 2013 | 11.53% | 5.73% |
| Dec 31, 2012 | 9.06% | 8.98% |
| Dec 31, 2011 | 13.62% | 12.44% |
| Dec 31, 2010 | 10.55% | 12.03% |
| Dec 31, 2009 | 6.44% | 9.94% |
| Dec 31, 2008 | 6.76% | -22.98% |
| Dec 31, 2007 | 8.11% | 8.10% |
| Dec 31, 2006 | 5.65% | 14.06% |
| Dec 31, 2005 | 4.51% | 10.70% |
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).