LyondellBasell Industries NV (LYB)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	41,107,000	41,384,000	43,009,000	47,541,000	50,451,000	53,075,000	53,525,000	50,248,000	46,173,000	41,280,000	35,356,000	29,341,000	27,753,000	27,995,000	29,941,000	33,443,000	34,727,000	35,424,000	36,857,000	38,015,000
Property, plant and equipment	US$ in thousands	15,547,000	15,194,000	15,408,000	15,401,000	15,387,000	14,823,000	14,741,000	14,729,000	14,556,000	14,836,000	14,645,000	14,390,000	14,386,000	14,133,000	14,526,000	14,387,000	14,130,000	13,669,000	13,285,000	12,797,000
Fixed asset turnover		2.64	2.72	2.79	3.09	3.28	3.58	3.63	3.41	3.17	2.78	2.41	2.04	1.93	1.98	2.06	2.32	2.46	2.59	2.77	2.97

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $41,107,000K ÷ $15,547,000K
= 2.64

The fixed asset turnover ratio for LyondellBasell Industries NV has been gradually decreasing over the past eight quarters, with the ratio ranging from 3.63 in Q2 2022 to 2.64 in Q4 2023. This indicates that the company's efficiency in generating revenue from its fixed assets has been declining over time.

A fixed asset turnover ratio measures how effectively a company is utilizing its fixed assets to generate sales revenue. A higher ratio is generally preferred as it suggests that the company is efficiently utilizing its assets to generate revenue.

The decreasing trend in LyondellBasell Industries NV's fixed asset turnover ratio may indicate potential issues with asset utilization efficiency, such as underutilization or inefficiencies in the management and maintenance of fixed assets. This trend warrants further investigation to identify the root causes and implement strategies to improve asset utilization and ultimately enhance the company's overall financial performance.