LyondellBasell Industries NV (LYB)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 41,107,000 | 50,451,000 | 46,173,000 | 27,753,000 | 34,727,000 |
| Property, plant and equipment | US$ in thousands | 15,547,000 | 15,387,000 | 14,556,000 | 14,386,000 | 14,130,000 |
| Fixed asset turnover | 2.64 | 3.28 | 3.17 | 1.93 | 2.46 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $41,107,000K ÷ $15,547,000K
= 2.64
The fixed asset turnover of LyondellBasell Industries NV has fluctuated over the past five years. In 2023, the company achieved a fixed asset turnover ratio of 2.64, indicating that for every dollar invested in fixed assets, the company generated $2.64 in revenue. This represents a decrease from the prior year, where the ratio was 3.28. Despite the decrease, the company's fixed asset turnover in 2023 remains relatively healthy compared to 2020 and 2019 when the ratios were 1.93 and 2.46, respectively.
The decline in fixed asset turnover from 2022 to 2023 could be an indication of decreased efficiency in utilizing fixed assets to generate revenue. It is essential for the company to closely monitor this trend and assess the reasons behind the decline to ensure optimal utilization of fixed assets in driving revenue growth.
Peer comparison
Dec 31, 2023