LyondellBasell Industries NV (LYB)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 40,302,000 | 41,107,000 | 50,451,000 | 46,173,000 | 27,753,000 |
| Total current assets | US$ in thousands | 12,266,000 | 13,152,000 | 11,845,000 | 12,217,000 | 11,634,000 |
| Total current liabilities | US$ in thousands | 6,705,000 | 7,150,000 | 6,760,000 | 7,230,000 | 5,502,000 |
| Working capital turnover | 7.25 | 6.85 | 9.92 | 9.26 | 4.53 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $40,302,000K ÷ ($12,266,000K – $6,705,000K)
= 7.25
Based on the provided data, the working capital turnover of LyondellBasell Industries NV has shown a consistent improvement over the years. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.
In December 2020, the working capital turnover ratio was 4.53, indicating that the company generated $4.53 in revenue for every dollar of working capital invested.
By December 2024, the working capital turnover ratio had increased to 7.25, reflecting a significant improvement in the efficiency of working capital utilization. This suggests that the company has been able to generate more revenue per dollar of working capital, which could be a result of better inventory management, effective accounts receivable collection, or more efficient accounts payable management.
Overall, the trend in the working capital turnover ratio for LyondellBasell Industries NV shows a positive movement towards better efficiency in utilizing working capital to drive sales growth and operational performance.
Peer comparison
Dec 31, 2024