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Albemarle Gross Margin %

: 39.23% (As of Jun. 2022)
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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 highest Gross 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 %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 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 % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 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.



Albemarle Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Albemarle's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=998 / 3327.957
=(Revenue - Cost of Goods Sold) / Revenue
=(3327.957 - 2329.986) / 3327.957
=29.99 %

Albemarle's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=580.4 / 1479.593
=(Revenue - Cost of Goods Sold) / Revenue
=(1479.593 - 899.169) / 1479.593
=39.23 %

* 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 Business Description

Albemarle logo
Address
4250 Congress Street, Suite 900, Charlotte, NC, USA, 28209
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.
Executives
Cramer Ralf Hans director MIERENDORSFSTRASSE 26 BENSHEIM 2M 64625
Anderson Melissa H. officer: SVP, Chief HR Officer ALBEMARLE CORPORATION 4250 CONGRESS ST. SUITE 900 CHARLOTTE NC 28209
Barichivich John Clarence Iii officer: VP, Controller & CAO 4250 CONGRESS ST. SUITE 900 CHARLOTTE NC 28209
Minor Glenda J director 17000 ROTUNDA DRIVE DEARBORN MI 48120
Van Deursen Holly director 21211 NORDHOFF STREET CHATSWORTH CA 91311
Johnson Netha N. officer: President, Bromine Specialties 3489 CRESTMOOR DRIVE WOODBURY MN 55125
Crawford Raphael Goszcz officer: President, Catalysts 4311 GREENBRIAR HILLS PLANTATION RD CHARLOTTE NC 28277
Marlow Deeanne J officer: SVP, Chief HR Officer 4250 CONGRESS STREET SUITE 900 CHARLOTTE NC 28209
Norris Eric officer: President, Lithium 1519 AUDUBON ROAD CHARLOTTE NC 28211
Ryan David Terrence officer: VP, Corp. Strategy & IR 8904 HIGHFIELD ROAD RICHMOND VA 23229
Maine Douglas L director ALBEMARLE CORP 451 FLORIDA ST BATON ROUGE LA 70801
Hernandez William H director 5500 WAYZATA BLVD. SUITE 800 GOLDEN VALLEY MN 55416
Wolff Alejandro Daniel director ALBEMARLE CORP. 451 FLORIDA ST BATON ROUGE LA 70801
Masters J Kent director ALBEMARLE CORP. 451 FLORIDA ST BATON ROUGE LA 70801
Brlas Laurie director C/O ALBEMARLE CORPORATION 4250 CONGRESS ST STE 900 CHARLOTTE NC 28209

Albemarle Headlines

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