Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
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Long-term Activity Ratios (Summary)
Albemarle Corp., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows a declining trend from the first quarter of 2019 through the end of 2020, decreasing from 1.07 to 0.58. This suggests a gradual reduction in the efficiency with which the company utilized its fixed assets during this period. Beginning in early 2021, the ratio stabilizes with minor fluctuations around 0.56 to 0.6. Notably, from mid-2022 onwards, there is a pronounced upward trend, climbing steadily to reach 1.19 by the first quarter of 2023. This latter increase indicates a significant improvement in the company's ability to generate revenue from its fixed asset base.
- Total Asset Turnover
- Total asset turnover follows a similar downward trajectory initially, declining from 0.43 in early 2019 to a low of 0.3 by the end of 2020 and the first half of 2021. This pattern reflects decreasing overall efficiency in using total assets to generate sales. Starting from mid-2021, a gradual recovery is observed, with the ratio increasing to 0.5 by March 2023. The improvement suggests enhanced asset utilization and operational efficiency over the recent quarters.
- Equity Turnover
- Equity turnover remains relatively stable but shows a downward movement from 0.92 in early 2019 to a low point around 0.52 to 0.59 during 2020 and early 2021. This drop may indicate less effective use of shareholders' equity in generating revenue during that period. From mid-2021, there is a clear upward trend, with the ratio rising from 0.62 to 0.95 by the first quarter of 2023. This resurgence points to progressive improvements in leveraging equity capital for sales growth.
- Overall Insights
- The analysis of turnover ratios reveals a consistent pattern across net fixed asset, total asset, and equity turnover metrics. Each ratio experiences a decline from 2019 into 2020, indicative of challenges in operational efficiency and asset utilization during that timeframe. From late 2021 onward, all three turnover measures demonstrate recovery and strengthening trends, reflecting improved management of assets and equity to drive revenue. The most pronounced recovery is observed in net fixed asset turnover, underscoring more effective revenue generation from core fixed assets. These trends suggest that the company has made notable strides in operational efficiency and resource utilization following a period of relative decline.
Net Fixed Asset Turnover
Albemarle Corp., net fixed asset turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||
| Net property, plant and equipment | |||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Net fixed asset turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Net fixed asset turnover
= (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
÷ Net property, plant and equipment
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the analyzed periods. Net sales experienced fluctuations with an overall upward trajectory, characterized by a significant dip occurring around early 2020 followed by a strong and continuous increase up to early 2023. The lowest sales point was in the first quarter of 2020, after which the company demonstrated substantial recovery and growth, reaching the highest sales figures in the last reported quarter.
The net property, plant, and equipment (PP&E) item shows a steady and consistent increase over the entire period, indicating ongoing investment in fixed assets. From the initial value in early 2019, the amount climbed continuously each quarter, with no indications of asset disposals or significant impairments. This increasing asset base signals a focus on capacity expansion or modernization efforts.
The net fixed asset turnover ratio presents an interesting pattern in relation to sales and asset growth. Initially, the ratio declined from just over 1.0 in early 2019 to a low of approximately 0.56 by late 2021, reflecting that sales growth was not keeping pace with the increase in fixed assets during this timeframe. However, from late 2021 onward, the turnover ratio reversed course and steadily improved, rising above previous levels to reach 1.19 in the first quarter of 2023. This recovery suggests an improvement in the efficiency with which the company utilizes its fixed assets to generate sales.
- Net Sales
- Displayed a downturn during early 2020, likely influenced by external market factors, but subsequently rebounded strongly, more than tripling from the lowest point to the highest point observed by early 2023.
- Net Property, Plant, and Equipment
- Demonstrated continuous investment with a near consistent upward trend, increasing by over 130% between the first quarter of 2019 and the first quarter of 2023, indicating sustained capital expenditure and potential growth initiatives.
- Net Fixed Asset Turnover
- Showed an initial decline through 2019 and 2020, reflecting slower sales growth relative to asset growth. From late 2021, this ratio improved markedly, suggesting enhanced operational efficiency or stronger sales performance against the asset base.
Overall, the data suggests a period of significant capital investment paired with fluctuating sales growth initially, followed by a phase of accelerating sales and improved asset utilization. The improvements in fixed asset turnover toward the latest periods may indicate successful integration of recent investments and a positive outlook on operational productivity.
Total Asset Turnover
Albemarle Corp., total asset turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Total asset turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Total asset turnover
= (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales demonstrated a fluctuating pattern over the observed quarters, starting at approximately 832 million USD in the first quarter of 2019 and reaching a peak of around 2.62 billion USD by the first quarter of 2023. Initially, sales showed moderate growth with some dips, notably declining sharply in early 2020 during the first quarter, likely reflecting external economic challenges. Following this period, a steady recovery and significant acceleration in sales growth occurred, particularly from 2021 onwards, culminating in a nearly threefold increase from early 2019 levels by the start of 2023.
- Total Assets
- Total assets exhibited a consistent upward trend throughout the period, increasing from roughly 7.87 billion USD at the beginning of 2019 to about 17.56 billion USD by the first quarter of 2023. The growth in assets was relatively stable, with no significant contractions, reflecting ongoing investment or asset acquisition activities. The acceleration in asset accumulation became more pronounced from late 2021 onward, aligning with the surge observed in net sales.
- Total Asset Turnover
- The total asset turnover ratio, which measures the efficiency of asset use in generating sales, started around 0.43 in early 2019 and experienced a decline to approximately 0.30 by the end of 2020. This decline suggests decreased efficiency in asset utilization during the period of reduced sales growth. However, from 2021 onwards, the ratio improved steadily, reaching 0.50 by March 2023, indicating an enhancement in asset productivity. This improvement signals that the company not only expanded its asset base but also increased its effectiveness in converting assets into revenues in recent periods.
Equity Turnover
Albemarle Corp., equity turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||
| Total Albemarle Corporation shareholders’ equity | |||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Equity turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Equity turnover
= (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
÷ Total Albemarle Corporation shareholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a fluctuating trend from March 2019 to March 2020, initially increasing through the first three quarters of 2019, peaking near the end of the year, before declining in early 2020. However, from mid-2020 onwards, net sales demonstrated a robust upward trajectory with occasional fluctuations, culminating in a significant increase by March 2023. The growth was particularly pronounced from March 2021 through March 2023, indicating strong revenue expansion during this period.
- Total Shareholders’ Equity
- The total shareholders’ equity showed a generally steady increase from March 2019 through December 2020, with moderate growth each quarter. A marked acceleration in equity growth occurred beginning in March 2021, with equity values rising sharply throughout 2021 and 2022, reaching a peak in March 2023. This reflects a substantial accumulation of equity capital over the analyzed timeframe, suggesting either retained earnings growth, additional equity financing, or a combination of factors.
- Equity Turnover Ratio
- The equity turnover ratio, which measures net sales relative to shareholders' equity, revealed a declining trend from March 2019 until December 2020, indicating a reduction in how efficiently equity was generating sales during that period. The ratio decreased from approximately 0.92 to a low of 0.73. Starting in early 2021, the ratio began to recover and showed steady improvement quarter-over-quarter, eventually reaching 0.95 by March 2023. This suggests a renewed improvement in the efficiency with which the company utilized its equity base to generate sales, coinciding with the significant expansion in net sales and shareholders' equity.
- Overall Insights
- The data indicates that while the company experienced some pressure on sales and equity turnover efficiency in the early phases of the period, it transitioned into a phase of strong growth and improved operational efficiency beginning in 2021. Both net sales and shareholders’ equity grew substantially during this later period, and the equity turnover ratio’s recovery implies better leverage of equity for revenue generation. This overall pattern may reflect successful strategic initiatives or favorable market conditions leading to enhanced financial performance in recent years.