Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Albemarle Corp., long-term (investment) activity 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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Albemarle Corp. net fixed asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Albemarle Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Albemarle Corp. total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Albemarle Corp. equity turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Net Fixed Asset Turnover
Albemarle Corp., net fixed asset turnover 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 sales | 7,320,104) | 3,327,957) | 3,128,909) | 3,589,427) | 3,374,950) | |
| Net property, plant and equipment | 6,962,997) | 5,909,616) | 5,354,625) | 4,909,473) | 3,021,084) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 1.05 | 0.56 | 0.58 | 0.73 | 1.12 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Linde plc | 1.41 | 1.18 | 0.94 | 0.97 | — | |
| Sherwin-Williams Co. | 10.04 | 10.68 | 10.01 | 9.75 | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Chemicals | 2.14 | 1.81 | 1.49 | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Materials | 1.35 | 1.27 | 0.99 | — | — | |
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
Net fixed asset turnover = Net sales ÷ Net property, plant and equipment
= 7,320,104 ÷ 6,962,997 = 1.05
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Albemarle Corp. net fixed asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Albemarle Corp., net fixed asset turnover (including operating lease, right-of-use asset) 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 sales | 7,320,104) | 3,327,957) | 3,128,909) | 3,589,427) | 3,374,950) | |
| Net property, plant and equipment | 6,962,997) | 5,909,616) | 5,354,625) | 4,909,473) | 3,021,084) | |
| Operating lease right-of-use assets | 128,173) | 154,741) | 136,292) | 133,864) | —) | |
| Net property, plant and equipment (including operating lease, right-of-use asset) | 7,091,170) | 6,064,357) | 5,490,917) | 5,043,337) | 3,021,084) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 1.03 | 0.55 | 0.57 | 0.71 | 1.12 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Linde plc | 1.37 | 1.14 | 0.91 | 0.94 | — | |
| Sherwin-Williams Co. | 5.44 | 5.41 | 5.11 | 5.08 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Chemicals | 1.95 | 1.65 | 1.37 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Materials | 1.28 | 1.21 | 0.95 | — | — | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Net property, plant and equipment (including operating lease, right-of-use asset)
= 7,320,104 ÷ 7,091,170 = 1.03
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Albemarle Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Total Asset Turnover
Albemarle Corp., total asset turnover 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 sales | 7,320,104) | 3,327,957) | 3,128,909) | 3,589,427) | 3,374,950) | |
| Total assets | 15,456,522) | 10,974,118) | 10,450,946) | 9,860,863) | 7,581,674) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.47 | 0.30 | 0.30 | 0.36 | 0.45 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Linde plc | 0.42 | 0.38 | 0.31 | 0.33 | — | |
| Sherwin-Williams Co. | 0.98 | 0.97 | 0.90 | 0.87 | — | |
| Total Asset Turnover, Sector | ||||||
| Chemicals | 0.54 | 0.50 | 0.42 | — | — | |
| Total Asset Turnover, Industry | ||||||
| Materials | 0.51 | 0.49 | 0.40 | — | — | |
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
Total asset turnover = Net sales ÷ Total assets
= 7,320,104 ÷ 15,456,522 = 0.47
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Albemarle Corp. total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Equity Turnover
Albemarle Corp., equity turnover 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 sales | 7,320,104) | 3,327,957) | 3,128,909) | 3,589,427) | 3,374,950) | |
| Total Albemarle Corporation shareholders’ equity | 7,982,627) | 5,625,266) | 4,268,227) | 3,932,250) | 3,585,321) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 0.92 | 0.59 | 0.73 | 0.91 | 0.94 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Linde plc | 0.83 | 0.70 | 0.58 | 0.58 | — | |
| Sherwin-Williams Co. | 7.14 | 8.18 | 5.09 | 4.34 | — | |
| Equity Turnover, Sector | ||||||
| Chemicals | 1.29 | 1.09 | 0.90 | — | — | |
| Equity Turnover, Industry | ||||||
| Materials | 1.33 | 1.22 | 0.98 | — | — | |
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
Equity turnover = Net sales ÷ Total Albemarle Corporation shareholders’ equity
= 7,320,104 ÷ 7,982,627 = 0.92
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Albemarle Corp. equity turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |