Return on Equity (ROE)
since 2005
Calculation
Albemarle Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to Albemarle Corporation1 | ÷ | Total Albemarle Corporation shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 33.70% | = | 100 | × | 2,689,816) | ÷ | 7,982,627) |
| Dec 31, 2021 | 2.20% | = | 100 | × | 123,672) | ÷ | 5,625,266) |
| Dec 31, 2020 | 8.80% | = | 100 | × | 375,764) | ÷ | 4,268,227) |
| Dec 31, 2019 | 13.56% | = | 100 | × | 533,228) | ÷ | 3,932,250) |
| Dec 31, 2018 | 19.34% | = | 100 | × | 693,562) | ÷ | 3,585,321) |
| Dec 31, 2017 | 1.49% | = | 100 | × | 54,850) | ÷ | 3,674,549) |
| Dec 31, 2016 | 16.96% | = | 100 | × | 643,675) | ÷ | 3,795,062) |
| Dec 31, 2015 | 10.29% | = | 100 | × | 334,906) | ÷ | 3,254,392) |
| Dec 31, 2014 | 9.81% | = | 100 | × | 133,316) | ÷ | 1,359,465) |
| Dec 31, 2013 | 25.39% | = | 100 | × | 413,171) | ÷ | 1,627,361) |
| Dec 31, 2012 | 16.99% | = | 100 | × | 311,536) | ÷ | 1,833,598) |
| Dec 31, 2011 | 27.42% | = | 100 | × | 436,280) | ÷ | 1,591,277) |
| Dec 31, 2010 | 22.86% | = | 100 | × | 323,720) | ÷ | 1,416,074) |
| Dec 31, 2009 | 14.79% | = | 100 | × | 178,368) | ÷ | 1,205,696) |
| Dec 31, 2008 | 18.22% | = | 100 | × | 194,202) | ÷ | 1,065,771) |
| Dec 31, 2007 | 17.97% | = | 100 | × | 229,690) | ÷ | 1,278,305) |
| Dec 31, 2006 | 13.91% | = | 100 | × | 142,969) | ÷ | 1,028,098) |
| Dec 31, 2005 | 12.35% | = | 100 | × | 114,867) | ÷ | 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
Albemarle Corporation exhibited significant volatility in its Return on Equity (ROE) over the seventeen-year period from 2005 to 2022. While shareholders' equity demonstrated a consistent long-term upward trajectory, growing from approximately $930 million in 2005 to nearly $8 billion by 2022, the ROE fluctuated sharply due to substantial variations in annual net income.
- Early Growth Phase (2005–2011)
- A generally positive trend in ROE is observed during this period, rising from 12.35% in 2005 to a peak of 27.42% in 2011. This growth was supported by a steady increase in net income, which grew from $114.9 million to $436.3 million, outpacing the growth in the equity base.
- Period of Instability and Contraction (2012–2017)
- The period between 2012 and 2017 was marked by high volatility. ROE declined to 9.81% in 2014 and experienced a severe contraction in 2017, reaching a period low of 1.49%. This decline corresponds with a significant drop in net income to $54.85 million in 2017, despite the shareholders' equity remaining relatively stable at $3.67 billion.
- Recent Performance and 2022 Surge (2018–2022)
- Following a recovery to 19.34% in 2018, ROE entered a downward trend, falling to 2.20% by 2021. This decline was driven by diminishing net income relative to a rapidly expanding equity base, which reached $5.63 billion in 2021. However, 2022 saw a dramatic reversal, with ROE surging to 33.70%, the highest level in the entire dataset. This spike was the result of a massive increase in net income to $2.69 billion, significantly outweighing the increase in total shareholders' equity to $7.98 billion.
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Comparison to Competitors
Albemarle Corp., ROE, long-term trends, comparison to competitors
| Albemarle Corp. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Dec 31, 2022 | 33.70% | 10.36% | 65.12% |
| Dec 31, 2021 | 2.20% | 8.69% | 76.50% |
| Dec 31, 2020 | 8.80% | 5.29% | 56.23% |
| Dec 31, 2019 | 13.56% | 4.66% | 37.38% |
| Dec 31, 2018 | 19.34% | 8.49% | 29.72% |
| Dec 31, 2017 | 1.49% | 20.72% | 48.00% |
| Dec 31, 2016 | 16.96% | 29.87% | 60.30% |
| Dec 31, 2015 | 10.29% | 35.25% | 121.42% |
| Dec 31, 2014 | 9.81% | 30.13% | 86.90% |
| Dec 31, 2013 | 25.39% | 26.55% | 42.41% |
| Dec 31, 2012 | 16.99% | 27.90% | 35.22% |
| Dec 31, 2011 | 27.42% | 30.47% | 29.13% |
| Dec 31, 2010 | 22.86% | 20.63% | 28.74% |
| Dec 31, 2009 | 14.79% | 23.59% | 29.23% |
| Dec 31, 2008 | 18.22% | 30.21% | 29.70% |
| Dec 31, 2007 | 17.97% | 22.89% | 34.47% |
| Dec 31, 2006 | 13.91% | 21.70% | 28.91% |
| Dec 31, 2005 | 12.35% | 18.61% | 26.77% |
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., ROE, long-term trends, comparison to sector (chemicals)
| Albemarle Corp. | Chemicals | |
|---|---|---|
| Dec 31, 2022 | 33.70% | 14.30% |
| Dec 31, 2021 | 2.20% | 12.24% |
| Dec 31, 2020 | 8.80% | 8.90% |
| Dec 31, 2019 | 13.56% | 7.19% |
| Dec 31, 2018 | 19.34% | 9.92% |
| Dec 31, 2017 | 1.49% | 31.09% |
| Dec 31, 2016 | 16.96% | 38.16% |
| Dec 31, 2015 | 10.29% | 49.47% |
| Dec 31, 2014 | 9.81% | 38.67% |
| Dec 31, 2013 | 25.39% | 29.91% |
| Dec 31, 2012 | 16.99% | 29.57% |
| Dec 31, 2011 | 27.42% | 30.18% |
| Dec 31, 2010 | 22.86% | 22.39% |
| Dec 31, 2009 | 14.79% | 24.83% |
| Dec 31, 2008 | 18.22% | 30.06% |
| Dec 31, 2007 | 17.97% | 25.88% |
| Dec 31, 2006 | 13.91% | 23.89% |
| Dec 31, 2005 | 12.35% | 21.11% |
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., ROE, long-term trends, comparison to industry (materials)
| Albemarle Corp. | Materials | |
|---|---|---|
| Dec 31, 2022 | 33.70% | 16.42% |
| Dec 31, 2021 | 2.20% | 16.54% |
| Dec 31, 2020 | 8.80% | 8.40% |
| Dec 31, 2019 | 13.56% | 5.74% |
| Dec 31, 2018 | 19.34% | 12.42% |
| Dec 31, 2017 | 1.49% | 27.34% |
| Dec 31, 2016 | 16.96% | -11.75% |
| Dec 31, 2015 | 10.29% | -73.64% |
| Dec 31, 2014 | 9.81% | 5.03% |
| Dec 31, 2013 | 25.39% | 17.62% |
| Dec 31, 2012 | 16.99% | 21.12% |
| Dec 31, 2011 | 27.42% | 29.47% |
| Dec 31, 2010 | 22.86% | 30.11% |
| Dec 31, 2009 | 14.79% | 27.87% |
| Dec 31, 2008 | 18.22% | -82.36% |
| Dec 31, 2007 | 17.97% | 18.96% |
| Dec 31, 2006 | 13.91% | 33.59% |
| Dec 31, 2005 | 12.35% | 29.22% |
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).