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Albemarle Interest Coverage

: 10.48 (As of Jun. 2022)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Albemarle's Operating Income for the three months ended in Jun. 2022 was $434 Mil. Albemarle's Interest Expense for the three months ended in Jun. 2022 was $-41 Mil. Albemarle's interest coverage for the quarter that ended in Jun. 2022 was 10.48. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Albemarle's Interest Coverage or its related term are showing as below:

ALB' s Interest Coverage Range Over the Past 10 Years
Min: 4.96   Med: 8.2   Max: 19.33
Current: 12.4


ALB's Interest Coverage is ranked worse than
60.77% of 1216 companies
in the Chemicals industry
Industry Median: 18.45 vs ALB: 12.40

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Albemarle Interest Coverage Historical Data

The historical data trend for Albemarle's Interest Coverage 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
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.96 13.38 11.55 6.92 8.17

Albemarle Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage 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 15.79 25.80 19.07 11.51 10.48

Competitive Comparison

For the Specialty Chemicals subindustry, Albemarle's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Chemicals industry and Basic Materials sector, Albemarle's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Albemarle's Interest Coverage falls into.



Albemarle Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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

Here, for the fiscal year that ended in Dec. 2021, Albemarle's Interest Expense was $-61 Mil. Its Operating Income was $502 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,131 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*502.463/-61.476
=8.17

Albemarle's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Albemarle's Interest Expense was $-41 Mil. Its Operating Income was $434 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,206 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*434.096/-41.409
=10.48

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Albemarle  (NYSE:ALB) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Albemarle Interest Coverage Related Terms

Thank you for viewing the detailed overview of Albemarle's Interest Coverage 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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