LyondellBasell Industries NV (LYB)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	7.67	7.52	9.13	7.63	5.61
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	7.25	6.85	9.92	9.26	4.53

Analyzing the activity ratios of LyondellBasell Industries NV based on the provided data, the following key points can be observed:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times during a period the inventory is sold and replaced. For LyondellBasell Industries NV, the inventory turnover has shown an increasing trend from 5.61 in 2020 to 7.67 in 2024. This indicates that the company has been able to sell and replace its inventory at a faster pace over the years, which is a positive sign of operational efficiency.

2. Receivables Turnover:
- The receivables turnover ratio reflects how well a company is collecting on its credit sales. In this case, the data shows that the receivables turnover ratio is not provided for any of the years. This might indicate that the company does not extend credit sales significantly, or there could be other reasons for the absence of data. Without this information, it is challenging to assess the effectiveness of the company in collecting its receivables.

3. Payables Turnover:
- The payables turnover ratio measures how quickly a company pays its suppliers. However, the data provided does not include any information on the payables turnover ratio for the years under consideration. Without this data, it is not possible to evaluate how efficiently LyondellBasell Industries NV manages its payables.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how effectively a company is using its working capital to generate sales revenue. For LyondellBasell Industries NV, the working capital turnover ratio has fluctuated over the years, ranging from 4.53 in 2020 to 9.92 in 2022. This variability suggests that there may have been changes in the company's working capital management practices or in its sales generation strategies.

In conclusion, based on the available data, LyondellBasell Industries NV has demonstrated improving inventory turnover over the years, while information on receivables turnover and payables turnover is not provided. The working capital turnover ratio has shown variability, indicating potential changes in the company's working capital management efficiency. Further analysis with additional data and industry benchmarks would provide a more comprehensive assessment of the company's activity ratios.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	47.57	48.52	39.99	47.83	65.09
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

Based on the provided data for LyondellBasell Industries NV, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- The company's DOH has shown a decreasing trend over the years, decreasing from 65.09 days in 2020 to 47.57 days by the end of 2024.
- A decreasing trend in DOH indicates that the company is managing its inventory more efficiently, holding lower levels of inventory relative to its sales.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Days of Sales Outstanding (DSO) for any of the years.
- DSO is a measure of how long it takes for a company to collect its accounts receivable, and typically a lower DSO is considered favorable as it indicates faster collection of receivables.

3. Number of Days of Payables:
- Similar to DSO, the data does not include information on the Number of Days of Payables for any of the years.
- The number of days of payables is a measure of how long it takes a company to pay its suppliers, and a longer period indicates that the company is taking more time to pay its bills.

Overall, the decreasing trend in Days of Inventory on Hand for LyondellBasell Industries NV suggests a more efficient management of inventory levels. However, without data on DSO and the number of days of payables, a complete assessment of the company's efficiency in managing its receivables and payables cannot be made.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	2.95	2.80	1.93
Total asset turnover	1.13	1.11	1.39	1.26	0.78

Based on the provided data, we can analyze the long-term activity ratios of LyondellBasell Industries NV for the years 2020 to 2024.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio indicates how efficiently a company is utilizing its fixed assets to generate revenue.
- The ratio has shown a positive trend over the years, increasing from 1.93 in 2020 to 2.80 in 2021 and further to 2.95 in 2022. This suggests an improvement in the company's ability to generate sales from its investment in fixed assets.
- However, it is worth noting that the data for 2023 and 2024 is unavailable, which makes it challenging to assess the trend for those years accurately.

2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently a company is using its total assets to generate revenue.
- LyondellBasell Industries NV's total asset turnover ratio has also exhibited a positive trend over the years, rising from 0.78 in 2020 to 1.26 in 2021 and further to 1.39 in 2022.
- However, there was a slight decline in the ratio in 2023 to 1.11, followed by a modest increase to 1.13 in 2024. This could be indicative of changes in the company's asset management efficiency.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios until 2022 signifies improved asset utilization and efficiency in generating sales. The slight fluctuations in the ratios in 2023 and 2024 may warrant further investigation to understand the underlying factors affecting the company's long-term asset utilization.