LyondellBasell Industries NV (LYB)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,375,000 | 3,390,000 | 2,151,000 | 1,472,000 | 1,763,000 |
| Short-term investments | US$ in thousands | — | 38,000 | 16,000 | 9,000 | 702,000 |
| Total current liabilities | US$ in thousands | 6,705,000 | 7,150,000 | 6,760,000 | 7,230,000 | 5,502,000 |
| Cash ratio | 0.50 | 0.48 | 0.32 | 0.20 | 0.45 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,375,000K
+ $—K)
÷ $6,705,000K
= 0.50
The cash ratio of LyondellBasell Industries NV, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has shown some fluctuations over the past five years.
As of December 31, 2020, the cash ratio was 0.45, indicating that the company had $0.45 of cash and cash equivalents for every dollar of current liabilities. This ratio decreased to 0.20 by December 31, 2021, suggesting a potential liquidity issue or a decrease in cash reserves relative to short-term obligations.
However, in the following years, there was an improvement in the cash ratio. By December 31, 2022, the cash ratio increased to 0.32, signaling a better ability to meet short-term obligations with available cash. This trend continued as the ratio further improved to 0.48 by December 31, 2023, and to 0.50 by December 31, 2024.
Overall, the increasing trend in the cash ratio from 2021 to 2024 indicates an enhanced liquidity position for LyondellBasell Industries NV, potentially reducing the risk of default on its current liabilities and providing a more secure financial footing.
Peer comparison
Dec 31, 2024