Gross Margin % is calculated as gross profit divided by its revenue. Albemarle's Gross Profit for the
three
months ended in Jun. 2022 was $580 Mil. Albemarle's Revenue for the
three
months ended in Jun. 2022 was $1,480 Mil. Therefore, Albemarle's Gross Margin % for the quarter that ended in Jun. 2022 was 39.23%.
Warning Sign:
Albemarle Corp gross margin has been in long-term decline. The average rate of decline per year is -3.8%.
The historical rank and industry rank for Albemarle's Gross Margin % or its related term are showing as below:
ALB'
s Gross Margin % Range Over the Past 10 Years
Min: 29.99 Med: 35.28 Max: 36.24
Current: 34.98
During the past 13 years, the highestGross Margin % of Albemarle was 36.24%. The lowest was 29.99%. And the median was 35.28%.
ALB's Gross Margin % is ranked better than 73.56% of 1411
companies
in the Chemicals industry
Industry Median: 25.88
vs ALB: 34.98
Albemarle had a gross margin of 39.23% for the quarter that ended in Jun. 2022 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Albemarle was -3.80% per year.
Albemarle Gross Margin % Historical Data
The historical data trend for Albemarle's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Albemarle Annual Data
Trend
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Gross Margin %
36.01
36.07
35.04
31.80
29.99
Albemarle Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Gross Margin %
32.10
30.01
26.46
39.82
39.23
Competitive Comparison
For the Specialty Chemicals subindustry, Albemarle's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Albemarle Gross Margin % Distribution
For the Chemicals industry and Basic Materials sector, Albemarle's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Albemarle's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Albemarle (NYSE:ALB) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Albemarle had a gross margin of 39.23% for the quarter that ended in Jun. 2022 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Albemarle Gross Margin % Related Terms
Thank you for viewing the detailed overview of Albemarle's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Albemarle is the world's largest lithium producer. Our outlook for robust lithium demand is predicated upon increased demand for electric vehicle batteries. Albemarle produces lithium from its salt brine deposits in Chile and the U.S. and its hard rock joint venture mines in Australia. Albemarle is also a global leader in the production of bromine, used in flame retardants. The company is also a major producer of oil refining catalysts.
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