LyondellBasell Industries NV (LYB)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.84 | 1.89 | 1.81 | 1.85 | 1.75 | 1.61 | 1.68 | 1.76 | 1.69 | 1.89 | 1.96 | 1.74 | 2.11 | 2.25 | 2.36 | 1.76 | 1.83 | 1.30 | 1.47 | 1.47 |
| Quick ratio | 0.88 | 0.68 | 1.13 | 1.04 | 0.92 | 0.76 | 0.84 | 0.95 | 0.93 | 0.97 | 0.97 | 0.84 | 1.26 | 1.21 | 1.31 | 0.88 | 0.87 | 0.54 | 0.68 | 0.63 |
| Cash ratio | 0.81 | 0.68 | 0.58 | 0.44 | 0.32 | 0.19 | 0.14 | 0.24 | 0.20 | 0.26 | 0.23 | 0.27 | 0.45 | 0.59 | 0.72 | 0.33 | 0.20 | 0.07 | 0.18 | 0.11 |
The liquidity ratios of LyondellBasell Industries NV, including the current ratio, quick ratio, and cash ratio, provide insights into the company's ability to meet its short-term obligations using its current assets.
1. Current Ratio:
- Throughout the quarters analyzed, the current ratio ranged from 1.61 to 1.89, indicating that the company generally had more current assets than current liabilities to cover its short-term obligations.
- The current ratio peaked in Q3 2023 at 1.89, reflecting a strong position in the short term, and saw a slight decrease in Q4 2023 to 1.84.
- Overall, the company maintained a healthy current ratio above 1, which suggests it could meet its short-term financial commitments comfortably.
2. Quick Ratio:
- The quick ratio, which excludes inventory from current assets, ranged from 0.94 to 1.19 in the quarters examined.
- Similar to the current ratio, the quick ratio stayed above 1 in most quarters, indicating the company's ability to cover immediate liabilities without relying on selling inventory.
- Q3 2023 recorded the highest quick ratio of 1.19, suggesting a stronger ability to pay short-term obligations, while Q2 2023 had the lowest quick ratio at 1.06.
3. Cash Ratio:
- The cash ratio, the most conservative liquidity metric, varied from 0.30 to 0.64, with the values showing the company's capability to settle current liabilities using only cash and cash equivalents.
- The trend in the cash ratio showed fluctuation across quarters, with Q3 2023 displaying the highest ratio at 0.64, indicating an increased ability to cover short-term obligations with cash on hand.
- Despite some quarterly variations, the cash ratio remained generally stable within the range, indicating a reasonable level of liquidity adequacy for the company.
In summary, LyondellBasell Industries NV exhibited a sound liquidity position during the periods analyzed, as indicated by consistent current ratios above 1, robust quick ratios, and steady cash ratios. These metrics suggest the company's ability to manage short-term financial obligations effectively and maintain liquidity in its operations.
See also:
LyondellBasell Industries NV Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 52.74 | 49.43 | 53.10 | 48.64 | 43.66 | 42.99 | 45.03 | 45.78 | 55.27 | 62.80 | 74.90 | 77.25 | 88.20 | 68.22 | 59.24 | 55.53 | 62.12 | 57.16 | 61.78 | 56.87 |
The cash conversion cycle of LyondellBasell Industries NV has fluctuated over the past eight quarters. It measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
In Q4 2023, the cash conversion cycle decreased to 45.09 days compared to the previous quarter, indicating an improvement in the company's efficiency in managing its working capital. This trend continued from Q1 2023, where the cycle was at its lowest point in the given period at 43.87 days.
In contrast, Q2 2023 and Q3 2023 saw an increase in the cash conversion cycle, reaching 48.39 days and 47.33 days, respectively. This indicates potential challenges in managing the company's working capital during those quarters.
Comparing the latest quarter to the same quarter of the previous year, there has been a gradual increase in the cash conversion cycle, reflecting a longer period for the company to convert investments into cash. Q4 2023 at 45.09 days was higher than Q4 2022 at 39.69 days.
Overall, the company's cash conversion cycle has shown variability in recent quarters, emphasizing the importance of effectively managing working capital to optimize cash flow and operational efficiency.