Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Albemarle Corp., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Albemarle Corp. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Albemarle Corp. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Albemarle Corp. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Albemarle Corp. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Albemarle Corp. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Albemarle Corp. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Albemarle Corp. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Albemarle Corp. interest coverage ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Albemarle Corp. fixed charge coverage ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Debt to Equity
Albemarle Corp., debt to equity 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 portion of long-term debt | 2,128) | 389,920) | 804,677) | 187,336) | 307,294) | |
| Long-term debt, excluding current portion | 3,214,972) | 2,004,319) | 2,767,381) | 2,862,921) | 1,397,916) | |
| Total debt | 3,217,100) | 2,394,239) | 3,572,058) | 3,050,257) | 1,705,210) | |
| Total Albemarle Corporation shareholders’ equity | 7,982,627) | 5,625,266) | 4,268,227) | 3,932,250) | 3,585,321) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.40 | 0.43 | 0.84 | 0.78 | 0.48 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Linde plc | 0.45 | 0.33 | 0.34 | 0.28 | — | |
| Sherwin-Williams Co. | 3.41 | 3.95 | 2.30 | 2.11 | — | |
| Debt to Equity, Sector | ||||||
| Chemicals | 0.66 | 0.52 | 0.48 | — | — | |
| Debt to Equity, Industry | ||||||
| Materials | 0.67 | 0.55 | 0.56 | — | — | |
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
Debt to equity = Total debt ÷ Total Albemarle Corporation shareholders’ equity
= 3,217,100 ÷ 7,982,627 = 0.40
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Albemarle Corp. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity (including Operating Lease Liability)
Albemarle Corp., debt to equity (including operating lease liability) 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 portion of long-term debt | 2,128) | 389,920) | 804,677) | 187,336) | 307,294) | |
| Long-term debt, excluding current portion | 3,214,972) | 2,004,319) | 2,767,381) | 2,862,921) | 1,397,916) | |
| Total debt | 3,217,100) | 2,394,239) | 3,572,058) | 3,050,257) | 1,705,210) | |
| Current operating lease liabilities (included in Accrued expenses) | 35,515) | 31,603) | 22,297) | 23,137) | —) | |
| Noncurrent operating lease liabilities | 99,269) | 126,997) | 116,765) | 114,686) | —) | |
| Total debt (including operating lease liability) | 3,351,884) | 2,552,839) | 3,711,120) | 3,188,080) | 1,705,210) | |
| Total Albemarle Corporation shareholders’ equity | 7,982,627) | 5,625,266) | 4,268,227) | 3,932,250) | 3,585,321) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.42 | 0.45 | 0.87 | 0.81 | 0.48 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.47 | 0.35 | 0.36 | 0.30 | — | |
| Sherwin-Williams Co. | 4.03 | 4.72 | 2.80 | 2.53 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Chemicals | 0.73 | 0.57 | 0.54 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Materials | 0.72 | 0.60 | 0.61 | — | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Albemarle Corporation shareholders’ equity
= 3,351,884 ÷ 7,982,627 = 0.42
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Albemarle Corp. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital
Albemarle Corp., debt to capital 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 portion of long-term debt | 2,128) | 389,920) | 804,677) | 187,336) | 307,294) | |
| Long-term debt, excluding current portion | 3,214,972) | 2,004,319) | 2,767,381) | 2,862,921) | 1,397,916) | |
| Total debt | 3,217,100) | 2,394,239) | 3,572,058) | 3,050,257) | 1,705,210) | |
| Total Albemarle Corporation shareholders’ equity | 7,982,627) | 5,625,266) | 4,268,227) | 3,932,250) | 3,585,321) | |
| Total capital | 11,199,727) | 8,019,505) | 7,840,285) | 6,982,507) | 5,290,531) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.29 | 0.30 | 0.46 | 0.44 | 0.32 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Linde plc | 0.31 | 0.25 | 0.26 | 0.22 | — | |
| Sherwin-Williams Co. | 0.77 | 0.80 | 0.70 | 0.68 | — | |
| Debt to Capital, Sector | ||||||
| Chemicals | 0.40 | 0.34 | 0.33 | — | — | |
| Debt to Capital, Industry | ||||||
| Materials | 0.40 | 0.36 | 0.36 | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 3,217,100 ÷ 11,199,727 = 0.29
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Albemarle Corp. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
Albemarle Corp., debt to capital (including operating lease liability) 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 portion of long-term debt | 2,128) | 389,920) | 804,677) | 187,336) | 307,294) | |
| Long-term debt, excluding current portion | 3,214,972) | 2,004,319) | 2,767,381) | 2,862,921) | 1,397,916) | |
| Total debt | 3,217,100) | 2,394,239) | 3,572,058) | 3,050,257) | 1,705,210) | |
| Current operating lease liabilities (included in Accrued expenses) | 35,515) | 31,603) | 22,297) | 23,137) | —) | |
| Noncurrent operating lease liabilities | 99,269) | 126,997) | 116,765) | 114,686) | —) | |
| Total debt (including operating lease liability) | 3,351,884) | 2,552,839) | 3,711,120) | 3,188,080) | 1,705,210) | |
| Total Albemarle Corporation shareholders’ equity | 7,982,627) | 5,625,266) | 4,268,227) | 3,932,250) | 3,585,321) | |
| Total capital (including operating lease liability) | 11,334,511) | 8,178,105) | 7,979,347) | 7,120,330) | 5,290,531) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.30 | 0.31 | 0.47 | 0.45 | 0.32 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.32 | 0.26 | 0.27 | 0.23 | — | |
| Sherwin-Williams Co. | 0.80 | 0.83 | 0.74 | 0.72 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Chemicals | 0.42 | 0.36 | 0.35 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Materials | 0.42 | 0.38 | 0.38 | — | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 3,351,884 ÷ 11,334,511 = 0.30
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Albemarle Corp. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets
Albemarle Corp., debt to assets 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 portion of long-term debt | 2,128) | 389,920) | 804,677) | 187,336) | 307,294) | |
| Long-term debt, excluding current portion | 3,214,972) | 2,004,319) | 2,767,381) | 2,862,921) | 1,397,916) | |
| Total debt | 3,217,100) | 2,394,239) | 3,572,058) | 3,050,257) | 1,705,210) | |
| Total assets | 15,456,522) | 10,974,118) | 10,450,946) | 9,860,863) | 7,581,674) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.21 | 0.22 | 0.34 | 0.31 | 0.22 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Linde plc | 0.23 | 0.18 | 0.18 | 0.16 | — | |
| Sherwin-Williams Co. | 0.47 | 0.47 | 0.41 | 0.42 | — | |
| Debt to Assets, Sector | ||||||
| Chemicals | 0.28 | 0.23 | 0.23 | — | — | |
| Debt to Assets, Industry | ||||||
| Materials | 0.26 | 0.22 | 0.23 | — | — | |
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
Debt to assets = Total debt ÷ Total assets
= 3,217,100 ÷ 15,456,522 = 0.21
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Albemarle Corp. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
Albemarle Corp., debt to assets (including operating lease liability) 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 portion of long-term debt | 2,128) | 389,920) | 804,677) | 187,336) | 307,294) | |
| Long-term debt, excluding current portion | 3,214,972) | 2,004,319) | 2,767,381) | 2,862,921) | 1,397,916) | |
| Total debt | 3,217,100) | 2,394,239) | 3,572,058) | 3,050,257) | 1,705,210) | |
| Current operating lease liabilities (included in Accrued expenses) | 35,515) | 31,603) | 22,297) | 23,137) | —) | |
| Noncurrent operating lease liabilities | 99,269) | 126,997) | 116,765) | 114,686) | —) | |
| Total debt (including operating lease liability) | 3,351,884) | 2,552,839) | 3,711,120) | 3,188,080) | 1,705,210) | |
| Total assets | 15,456,522) | 10,974,118) | 10,450,946) | 9,860,863) | 7,581,674) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.22 | 0.23 | 0.36 | 0.32 | 0.22 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.24 | 0.19 | 0.20 | 0.17 | — | |
| Sherwin-Williams Co. | 0.55 | 0.56 | 0.50 | 0.51 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Chemicals | 0.31 | 0.26 | 0.25 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Materials | 0.28 | 0.24 | 0.25 | — | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 3,351,884 ÷ 15,456,522 = 0.22
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Albemarle Corp. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Financial Leverage
Albemarle Corp., financial leverage 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) | ||||||
| Total assets | 15,456,522) | 10,974,118) | 10,450,946) | 9,860,863) | 7,581,674) | |
| Total Albemarle Corporation shareholders’ equity | 7,982,627) | 5,625,266) | 4,268,227) | 3,932,250) | 3,585,321) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.94 | 1.95 | 2.45 | 2.51 | 2.11 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Linde plc | 1.99 | 1.85 | 1.86 | 1.76 | — | |
| Sherwin-Williams Co. | 7.28 | 8.48 | 5.65 | 4.97 | — | |
| Financial Leverage, Sector | ||||||
| Chemicals | 2.37 | 2.20 | 2.13 | — | — | |
| Financial Leverage, Industry | ||||||
| Materials | 2.61 | 2.49 | 2.47 | — | — | |
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).
1 2022 Calculation
Financial leverage = Total assets ÷ Total Albemarle Corporation shareholders’ equity
= 15,456,522 ÷ 7,982,627 = 1.94
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Albemarle Corp. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
Interest Coverage
Albemarle Corp., interest coverage 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) | ||||||
| Net income attributable to Albemarle Corporation | 2,689,816) | 123,672) | 375,764) | 533,228) | 693,562) | |
| Add: Net income attributable to noncontrolling interest | 125,315) | 76,270) | 70,851) | 71,129) | 45,577) | |
| Add: Income tax expense | 390,588) | 29,446) | 54,425) | 88,161) | 144,826) | |
| Add: Interest and financing expenses | 122,973) | 61,476) | 73,116) | 57,695) | 52,405) | |
| Earnings before interest and tax (EBIT) | 3,328,692) | 290,864) | 574,156) | 750,213) | 936,370) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 27.07 | 4.73 | 7.85 | 13.00 | 17.87 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Linde plc | 32.75 | 45.60 | 21.41 | 21.27 | — | |
| Sherwin-Williams Co. | 7.58 | 7.72 | 8.40 | 6.67 | — | |
| Interest Coverage, Sector | ||||||
| Chemicals | 15.52 | 17.53 | 12.73 | — | — | |
| Interest Coverage, Industry | ||||||
| Materials | 14.30 | 15.36 | 8.03 | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 3,328,692 ÷ 122,973 = 27.07
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Albemarle Corp. interest coverage ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Fixed Charge Coverage
Albemarle Corp., fixed charge coverage 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) | ||||||
| Net income attributable to Albemarle Corporation | 2,689,816) | 123,672) | 375,764) | 533,228) | 693,562) | |
| Add: Net income attributable to noncontrolling interest | 125,315) | 76,270) | 70,851) | 71,129) | 45,577) | |
| Add: Income tax expense | 390,588) | 29,446) | 54,425) | 88,161) | 144,826) | |
| Add: Interest and financing expenses | 122,973) | 61,476) | 73,116) | 57,695) | 52,405) | |
| Earnings before interest and tax (EBIT) | 3,328,692) | 290,864) | 574,156) | 750,213) | 936,370) | |
| Add: Operating lease cost | 43,809) | 42,338) | 33,904) | 35,335) | 37,600) | |
| Earnings before fixed charges and tax | 3,372,501) | 333,202) | 608,060) | 785,548) | 973,970) | |
| Interest and financing expenses | 122,973) | 61,476) | 73,116) | 57,695) | 52,405) | |
| Operating lease cost | 43,809) | 42,338) | 33,904) | 35,335) | 37,600) | |
| Fixed charges | 166,782) | 103,814) | 107,020) | 93,030) | 90,005) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 20.22 | 3.21 | 5.68 | 8.44 | 10.82 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Linde plc | 13.32 | 13.02 | 7.79 | 6.92 | — | |
| Sherwin-Williams Co. | 3.90 | 3.77 | 4.13 | 3.47 | — | |
| Fixed Charge Coverage, Sector | ||||||
| Chemicals | 7.13 | 6.99 | 5.55 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Materials | 8.68 | 8.75 | 4.84 | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,372,501 ÷ 166,782 = 20.22
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Albemarle Corp. fixed charge coverage ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |