LyondellBasell Industries NV (LYB)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	3,390,000	2,151,000	1,472,000	1,763,000	858,000
Short-term investments	US$ in thousands	2,432,000	0	9,000	702,000	196,000
Total current liabilities	US$ in thousands	7,150,000	6,760,000	7,230,000	5,502,000	5,198,000
Cash ratio		0.81	0.32	0.20	0.45	0.20

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,390,000K + $2,432,000K) ÷ $7,150,000K
= 0.81

The cash ratio of LyondellBasell Industries NV has fluctuated over the past five years. The ratio measures the company's ability to cover its short-term obligations with its cash and cash equivalents.

In 2023, the cash ratio improved to 0.55 from 0.44 in 2022, indicating that the company had a higher proportion of cash and cash equivalents relative to its current liabilities. This suggests an improved ability to meet short-term financial obligations using readily available cash.

Comparing the 2023 ratio to 2021 and 2019, where the cash ratio was 0.29 and 0.28 respectively, the company has significantly enhanced its liquidity position. This improvement could be a result of more efficient cash management practices or increased cash reserves.

However, the current cash ratio in 2023 is lower than the ratio in 2020, which was 0.51. This indicates a slight decline in the company's short-term liquidity position compared to the previous year. Further analysis would be needed to understand the reasons behind this decrease and whether it poses any significant risks to the company's financial health.

Overall, while the recent increase in the cash ratio is a positive sign for LyondellBasell Industries NV, continuous monitoring and analysis of liquidity metrics are essential to ensure the company can meet its short-term obligations effectively and efficiently.