LyondellBasell Industries NV (LYB)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 7.71 | 6.86 | 7.13 | 7.39 | 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 7.26 | 6.15 | 6.18 | 6.12 | — | 6.64 | 7.58 | 8.63 | 9.92 | 11.31 | 10.31 | 8.74 | 9.26 | 6.28 | 5.61 | 5.77 | 4.53 | 4.68 | 4.96 | 8.02 |
Activity ratios provide insights into how efficiently a company manages its resources to generate sales and cash flows. Let's analyze the activity ratios of LyondellBasell Industries NV based on the provided data:
1. Inventory Turnover: This ratio measures how many times a company sells and replaces its inventory over a specific period. LyondellBasell's inventory turnover has shown a fluctuating trend over the reported periods, ranging from 5.43 to 9.13. A higher inventory turnover indicates faster movement of inventory, which can lead to lower storage costs and reduced risk of obsolete inventory.
2. Receivables Turnover: Unfortunately, the data provided does not include information on receivables turnover, which is a key indicator of how efficiently a company collects its outstanding receivables from customers. It is important for assessing the effectiveness of the company's credit policies and the quality of its receivables.
3. Payables Turnover: Similar to receivables turnover, no data is available for payables turnover, which measures how quickly a company pays its suppliers. This ratio is crucial to understanding the company's payment practices and relationships with its suppliers.
4. Working Capital Turnover: This ratio reflects how efficiently a company utilizes its working capital to generate sales. LyondellBasell's working capital turnover has shown variability, ranging from 4.53 to 11.31. A higher working capital turnover indicates that the company is effectively using its short-term assets and liabilities to support its operations and generate revenue.
In conclusion, while the analysis of inventory turnover and working capital turnover provides some insights into LyondellBasell's operational efficiency, the lack of data on receivables turnover and payables turnover limits a comprehensive assessment of the company's overall activity management. To complete the picture, additional information on receivables and payables turnover would be necessary.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 47.37 | 53.22 | 51.18 | 49.39 | 48.52 | 49.43 | 49.67 | 45.28 | 39.99 | 41.41 | 41.86 | 44.48 | 47.83 | 54.81 | 61.02 | 67.17 | 65.09 | 59.20 | 52.74 | 50.49 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The analysis of LyondellBasell Industries NV activity ratios reveals interesting trends in its operational efficiency.
Days of Inventory on Hand (DOH):
- The DOH ratio measures the number of days a company holds its average inventory before selling it.
- LyondellBasell Industries NV's DOH has been fluctuating over the years, with a general decreasing trend from 50.49 days on March 31, 2020, to 47.83 days on December 31, 2021, before slightly increasing to 53.22 days on September 30, 2024.
- The decreasing trend in DOH indicates that the company has been managing its inventory more efficiently, possibly through better inventory management practices or more effective demand forecasting.
Days of Sales Outstanding (DSO):
- DSO is a measure of how long it takes for a company to collect its accounts receivable. Unfortunately, the data provided shows "— days" for all periods, indicating a lack of information on this aspect of LyondellBasell's operations.
Number of Days of Payables:
- The number of days of payables measures how long it takes for a company to pay its suppliers.
- Similar to DSO, the data provided shows "— days" for all periods, which hinders the analysis of how quickly or slowly LyondellBasell Industries NV pays its vendors.
In conclusion, the analysis of LyondellBasell's activity ratios shows improvements in inventory management efficiency over the period analyzed. However, the lack of data on DSO and the number of days of payables restricts a comprehensive assessment of the company's overall working capital management.
See also:
LyondellBasell Industries NV Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 2.48 | 2.79 | 3.09 | 2.95 | 3.20 | 3.63 | 3.41 | 2.80 | 2.48 | 2.17 | 1.85 | 1.93 | 1.98 | 2.06 | 2.32 |
| Total asset turnover | 1.13 | 1.11 | 1.13 | 1.13 | 1.13 | 1.12 | 1.17 | 1.31 | 1.39 | 1.45 | 1.45 | 1.33 | 1.26 | 1.07 | 0.95 | 0.82 | 0.78 | 0.88 | 0.95 | 1.08 |
The Fixed Asset Turnover ratio for LyondellBasell Industries NV has shown fluctuations over the past few years. It increased steadily from March 31, 2020, to June 30, 2022, peaking at 3.63, indicating that the company was generating $3.63 in revenue for every dollar invested in fixed assets. However, the ratio decreased thereafter, reaching 2.79 by June 30, 2023, which suggests a potential decrease in efficiency in utilizing fixed assets.
On the other hand, the Total Asset Turnover ratio reflects how efficiently the company is using all its assets to generate revenue. This ratio also experienced fluctuations but generally showed an increasing trend from March 31, 2020, to December 31, 2022, before stabilizing around 1.13 to 1.15 from March 31, 2023, to September 30, 2024. This indicates that the company is generating slightly more revenue in comparison to its total assets during this period.
Overall, the Fixed Asset Turnover and Total Asset Turnover ratios provide insights into the efficiency and effectiveness of LyondellBasell Industries NV in generating revenue from its fixed and total assets, respectively.
See also:
LyondellBasell Industries NV Long-term (Investment) Activity Ratios (Quarterly Data)