LyondellBasell Industries NV (LYB)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	35,849,000	36,265,000	38,176,000	41,575,000	43,847,000	45,425,000	44,446,000	40,855,000	37,397,000	33,175,000	28,951,000	25,169,000	24,359,000	24,691,000	26,075,000	28,723,000	29,301,000	29,985,000	31,215,000	31,963,000
Inventory	US$ in thousands	4,765,000	4,911,000	5,195,000	5,158,000	4,804,000	5,153,000	5,097,000	4,979,000	4,901,000	4,982,000	4,840,000	4,632,000	4,344,000	4,005,000	3,768,000	3,973,000	4,588,000	4,446,000	4,685,000	4,496,000
Inventory turnover		7.52	7.38	7.35	8.06	9.13	8.82	8.72	8.21	7.63	6.66	5.98	5.43	5.61	6.17	6.92	7.23	6.39	6.74	6.66	7.11

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $35,849,000K ÷ $4,765,000K
= 7.52

Inventory turnover is a key financial ratio that measures how efficiently a company is managing its inventory by indicating how many times in a given period the company sells and replaces its inventory. For LyondellBasell Industries NV, the inventory turnover has shown some fluctuations over the past eight quarters.

In Q4 2023, the inventory turnover was 7.52, which indicates that the company sold and replaced its inventory approximately 7.52 times during that quarter. This figure was slightly higher than Q3 2023 (7.38) and Q2 2023 (7.35), but lower than Q1 2023 (8.06). The trend over these quarters suggests that the company's inventory turnover was relatively stable but showed a slight decrease in the most recent period.

Comparing the Q4 figures to the same period in the previous year, Q4 2022 (9.13), there has been a noticeable decline in inventory turnover. This decrease may suggest a slowdown in sales relative to inventory levels or more efficient inventory management.

Over the past eight quarters, the company's inventory turnover has ranged from a low of 7.35 to a high of 9.13, indicating some variability in how quickly the company is selling and replacing its inventory. Overall, a downward trend in inventory turnover may be a signal for management to assess and potentially streamline inventory practices to improve efficiency and profitability.