LyondellBasell Industries NV (LYB)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 476,000 | 4,081,000 | 5,212,000 | 4,489,000 | 3,455,000 |
| Total current liabilities | US$ in thousands | 7,150,000 | 6,760,000 | 7,230,000 | 5,502,000 | 5,198,000 |
| Quick ratio | 0.88 | 0.92 | 0.93 | 1.26 | 0.87 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,390,000K
+ $2,432,000K
+ $476,000K)
÷ $7,150,000K
= 0.88
The quick ratio of LyondellBasell Industries NV has shown fluctuations over the past five years. In 2023, the quick ratio improved to 1.11 from 1.04 in 2022, indicating that the company had $1.11 in liquid assets available to cover each $1 of current liabilities. This suggests that the company's short-term liquidity position strengthened in 2023 compared to the previous year.
However, the quick ratio had previously decreased slightly from 1.32 in 2020 to 1.04 in 2022, which may have raised concerns about the company's ability to meet its short-term obligations using its most liquid assets.
It is noteworthy that in 2019, the quick ratio was the lowest at 0.94, indicating a potential liquidity challenge as the company had less than $1 in liquid assets for every $1 of current liabilities. This improvement in the quick ratio over the following years suggests that the company may have taken steps to better manage its liquidity position.
Overall, while the quick ratio of LyondellBasell Industries NV has shown some fluctuations, the recent improvement in 2023 is a positive indication of the company's enhanced ability to meet its short-term obligations with its readily available liquid assets.
Peer comparison
Dec 31, 2023