Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Albemarle Corp., liquidity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.89 | 1.07 | 1.22 | 1.58 | 1.69 | |
| Quick ratio | 1.05 | 0.57 | 0.74 | 0.92 | 1.03 | |
| Cash ratio | 0.55 | 0.23 | 0.41 | 0.44 | 0.47 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Albemarle Corp. current ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Albemarle Corp. quick ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Albemarle Corp. cash ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Current Ratio
Albemarle Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 5,186,917) | 2,007,981) | 2,206,184) | 2,225,109) | 1,998,421) | |
| Current liabilities | 2,741,015) | 1,874,335) | 1,801,849) | 1,408,996) | 1,183,173) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.89 | 1.07 | 1.22 | 1.58 | 1.69 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Linde plc | 0.79 | 0.74 | 0.80 | 0.85 | — | |
| Current Ratio, Industry | ||||||
| Materials | 1.26 | 1.28 | 1.18 | 1.19 | — | |
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).
1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 5,186,917 ÷ 2,741,015 = 1.89
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Albemarle Corp. current ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Quick Ratio
Albemarle Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 1,499,142) | 439,272) | 746,724) | 613,110) | 555,320) | |
| Trade accounts receivable, less allowance for doubtful accounts | 1,190,970) | 556,922) | 530,838) | 612,651) | 605,712) | |
| Other accounts receivable | 185,819) | 66,184) | 61,958) | 67,551) | 52,059) | |
| Total quick assets | 2,875,931) | 1,062,378) | 1,339,520) | 1,293,312) | 1,213,091) | |
| Current liabilities | 2,741,015) | 1,874,335) | 1,801,849) | 1,408,996) | 1,183,173) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.05 | 0.57 | 0.74 | 0.92 | 1.03 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Linde plc | 0.61 | 0.55 | 0.59 | 0.61 | — | |
| Quick Ratio, Industry | ||||||
| Materials | 0.88 | 0.88 | 0.77 | 0.69 | — | |
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).
1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,875,931 ÷ 2,741,015 = 1.05
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Albemarle Corp. quick ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Cash Ratio
Albemarle Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 1,499,142) | 439,272) | 746,724) | 613,110) | 555,320) | |
| Total cash assets | 1,499,142) | 439,272) | 746,724) | 613,110) | 555,320) | |
| Current liabilities | 2,741,015) | 1,874,335) | 1,801,849) | 1,408,996) | 1,183,173) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.55 | 0.23 | 0.41 | 0.44 | 0.47 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Linde plc | 0.33 | 0.21 | 0.27 | 0.22 | — | |
| Cash Ratio, Industry | ||||||
| Materials | 0.60 | 0.56 | 0.43 | 0.31 | — | |
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).
1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,499,142 ÷ 2,741,015 = 0.55
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Albemarle Corp. cash ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |