Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Albemarle Corp., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Albemarle Corp. gross profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Albemarle Corp. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Albemarle Corp. net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Albemarle Corp. ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Albemarle Corp. ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Gross Profit Margin
Albemarle Corp., gross profit margin 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) | ||||||
| Gross profit | 3,074,587) | 997,971) | 994,853) | 1,257,778) | 1,217,256) | |
| Net sales | 7,320,104) | 3,327,957) | 3,128,909) | 3,589,427) | 3,374,950) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 42.00% | 29.99% | 31.80% | 35.04% | 36.07% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Linde plc | 41.70% | 43.03% | 43.53% | 41.04% | — | |
| Sherwin-Williams Co. | 42.10% | 42.83% | 47.29% | 44.89% | — | |
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 3,074,587 ÷ 7,320,104 = 42.00%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Albemarle Corp. gross profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Operating Profit Margin
Albemarle Corp., operating profit margin 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) | ||||||
| Operating profit | 2,470,061) | 798,434) | 505,812) | 666,123) | 911,540) | |
| Net sales | 7,320,104) | 3,327,957) | 3,128,909) | 3,589,427) | 3,374,950) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 33.74% | 23.99% | 16.17% | 18.56% | 27.01% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Linde plc | 16.09% | 16.19% | 12.19% | 10.39% | — | |
| Sherwin-Williams Co. | 13.56% | 12.83% | 15.58% | 12.78% | — | |
| Operating Profit Margin, Sector | ||||||
| Chemicals | 15.08% | 14.87% | 13.56% | 11.32% | — | |
| Operating Profit Margin, Industry | ||||||
| Materials | 19.68% | 21.62% | 14.41% | 10.43% | — | |
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
Operating profit margin = 100 × Operating profit ÷ Net sales
= 100 × 2,470,061 ÷ 7,320,104 = 33.74%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Albemarle Corp. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Net Profit Margin
Albemarle Corp., net profit margin 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) | |
| Net sales | 7,320,104) | 3,327,957) | 3,128,909) | 3,589,427) | 3,374,950) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 36.75% | 3.72% | 12.01% | 14.86% | 20.55% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Linde plc | 12.43% | 12.42% | 9.18% | 8.09% | — | |
| Sherwin-Williams Co. | 9.12% | 9.35% | 11.06% | 8.61% | — | |
| Net Profit Margin, Sector | ||||||
| Chemicals | 11.11% | 11.22% | 9.94% | 8.29% | — | |
| Net Profit Margin, Industry | ||||||
| Materials | 12.31% | 13.59% | 8.58% | 5.93% | — | |
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 profit margin = 100 × Net income attributable to Albemarle Corporation ÷ Net sales
= 100 × 2,689,816 ÷ 7,320,104 = 36.75%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Albemarle Corp. net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Return on Equity (ROE)
Albemarle Corp., ROE 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) | |
| Total Albemarle Corporation shareholders’ equity | 7,982,627) | 5,625,266) | 4,268,227) | 3,932,250) | 3,585,321) | |
| Profitability Ratio | ||||||
| ROE1 | 33.70% | 2.20% | 8.80% | 13.56% | 19.34% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Linde plc | 10.36% | 8.69% | 5.29% | 4.66% | — | |
| Sherwin-Williams Co. | 65.12% | 76.50% | 56.23% | 37.38% | — | |
| ROE, Sector | ||||||
| Chemicals | 14.30% | 12.24% | 8.90% | 7.19% | — | |
| ROE, Industry | ||||||
| Materials | 16.42% | 16.54% | 8.40% | 5.74% | — | |
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
ROE = 100 × Net income attributable to Albemarle Corporation ÷ Total Albemarle Corporation shareholders’ equity
= 100 × 2,689,816 ÷ 7,982,627 = 33.70%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Albemarle Corp. ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Return on Assets (ROA)
Albemarle Corp., ROA 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) | |
| Total assets | 15,456,522) | 10,974,118) | 10,450,946) | 9,860,863) | 7,581,674) | |
| Profitability Ratio | ||||||
| ROA1 | 17.40% | 1.13% | 3.60% | 5.41% | 9.15% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Linde plc | 5.21% | 4.69% | 2.83% | 2.64% | — | |
| Sherwin-Williams Co. | 8.94% | 9.02% | 9.95% | 7.52% | — | |
| ROA, Sector | ||||||
| Chemicals | 6.03% | 5.56% | 4.17% | 3.57% | — | |
| ROA, Industry | ||||||
| Materials | 6.28% | 6.65% | 3.40% | 2.43% | — | |
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
ROA = 100 × Net income attributable to Albemarle Corporation ÷ Total assets
= 100 × 2,689,816 ÷ 15,456,522 = 17.40%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Albemarle Corp. ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |