LyondellBasell Industries NV (LYB)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.79% | 13.09% | 19.01% | 12.23% | 15.62% |
| Operating profit margin | 7.43% | 10.11% | 14.67% | 5.62% | 11.85% |
| Pretax margin | 6.38% | 9.46% | 14.68% | 4.99% | 11.65% |
| Net profit margin | 5.16% | 7.71% | 12.17% | 5.14% | 9.78% |
Based on the data provided, we can see a fluctuation in LyondellBasell Industries NV's profitability ratios over the past five years:
1. Gross Profit Margin:
The gross profit margin has been trending downward, decreasing from 15.62% in 2019 to 12.79% in 2023. This indicates that the company's cost of goods sold relative to its revenue has increased over the years, impacting its profitability at the gross level.
2. Operating Profit Margin:
The operating profit margin has also shown a decreasing trend, falling from 11.85% in 2019 to 8.69% in 2023. This suggests that the company's operating expenses as a percentage of revenue have been on the rise, affecting its profitability from its core business operations.
3. Pre-tax Margin:
The pre-tax margin has fluctuated over the years, with a significant drop from 11.67% in 2019 to 6.39% in 2023. This indicates varying levels of profitability before accounting for taxes, potentially impacted by factors such as operating efficiency and non-operating income or expenses.
4. Net Profit Margin:
The net profit margin has also experienced fluctuations, decreasing from 9.74% in 2019 to 5.14% in 2023. This measure of profitability after accounting for all expenses, including taxes, shows a declining trend, indicating that the company's overall profitability has been under pressure.
Overall, the declining trend in all four profitability ratios suggests that LyondellBasell Industries NV's profitability has weakened over the years, potentially due to cost pressures, changes in revenue mix, or other operational challenges. Investors and stakeholders may want to further investigate the factors behind these trends to assess the company's financial health and sustainability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.25% | 14.03% | 18.43% | 4.40% | 13.52% |
| Return on assets (ROA) | 5.73% | 10.69% | 15.29% | 4.03% | 11.16% |
| Return on total capital | 23.61% | 40.44% | 57.12% | 19.56% | 54.60% |
| Return on equity (ROE) | 16.40% | 30.83% | 47.37% | 17.90% | 42.23% |
The profitability ratios of LyondellBasell Industries NV display certain trends over the past five years. The operating return on assets (Operating ROA) has shown fluctuations, decreasing from 20.13% in 2021 to 9.65% in 2023, with a peak in 2022 at 14.22%. This metric measures the company's operational efficiency in generating profits from its assets.
The return on assets (ROA) has also demonstrated variability, dropping from 15.25% in 2021 to 5.71% in 2023, albeit reaching 10.66% in 2022. ROA indicates how effectively the company utilizes its assets to generate profits.
Meanwhile, the return on total capital has showcased notable fluctuations, with a significant increase from 10.02% in 2020 to 33.48% in 2021, followed by a decrease to 14.70% in 2023. This ratio reflects the company's overall profitability in relation to its total capital employed.
Notably, the return on equity (ROE) has also experienced variations, ranging from 16.33% in 2023 to 47.24% in 2021. ROE demonstrates the company's ability to generate profits from shareholders' equity.
In summary, while the profitability ratios of LyondellBasell Industries NV have demonstrated fluctuations over the past five years, it is crucial for stakeholders to monitor these metrics to assess the company's performance and profitability over time.