LyondellBasell Industries NV (LYB)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 35,849,000 | 43,847,000 | 37,397,000 | 24,359,000 | 29,301,000 |
| Payables | US$ in thousands | — | 3,106,000 | 3,460,000 | 2,398,000 | 2,516,000 |
| Payables turnover | — | 14.12 | 10.81 | 10.16 | 11.65 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $35,849,000K ÷ $—K
= —
The payables turnover ratio measures how efficiently a company is managing its trade credit obligations by evaluating how many times a company pays off its accounts payable during a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.
Analyzing the payables turnover ratio trend for LyondellBasell Industries NV from 2019 to 2023, we observe fluctuations in the ratio. In 2019, the payables turnover stood at 10.01 times, indicating that the company paid its suppliers around 10 times during that year. Subsequently, the payables turnover decreased to 8.26 in 2020, suggesting a decrease in the frequency of payments to suppliers. However, in 2021, there was a slight increase in the ratio to 8.72, but it remained below the 2019 level.
A significant improvement was seen in 2022 with a payables turnover of 12.24, reflecting a higher frequency of payments to suppliers compared to the previous years. This increase could indicate better liquidity management or improved supplier relationships. In 2023, the payables turnover ratio decreased to 9.40, still higher than in the years 2020 and 2021 but lower than the peak in 2022.
Overall, while there have been fluctuations in LyondellBasell's payables turnover ratio over the past five years, the company has shown variability in its payment practices, with a notable increase in 2022. Further analysis in conjunction with other financial metrics would be necessary to determine the factors impacting these changes and assess the company's overall financial health and efficiency in managing its payables.
Peer comparison
Dec 31, 2023