LyondellBasell Industries NV (LYB)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 3,053,000 | 3,225,000 | 3,023,000 | 4,153,000 | 5,101,000 | 5,525,000 | 6,961,000 | 7,346,000 | 6,773,000 | 6,755,000 | 4,530,000 | 2,343,000 | 1,559,000 | 1,464,000 | 2,565,000 | 3,403,000 | 4,116,000 | 4,112,000 | 4,305,000 | 4,754,000 |
| Total assets | US$ in thousands | 37,000,000 | 36,875,000 | 36,683,000 | 36,255,000 | 36,365,000 | 36,491,000 | 37,024,000 | 37,854,000 | 36,742,000 | 38,662,000 | 37,259,000 | 35,746,000 | 35,403,000 | 31,949,000 | 31,541,000 | 31,100,000 | 30,435,000 | 30,114,000 | 31,171,000 | 29,889,000 |
| Operating ROA | 8.25% | 8.75% | 8.24% | 11.45% | 14.03% | 15.14% | 18.80% | 19.41% | 18.43% | 17.47% | 12.16% | 6.55% | 4.40% | 4.58% | 8.13% | 10.94% | 13.52% | 13.65% | 13.81% | 15.91% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $3,053,000K ÷ $37,000,000K
= 8.25%
To assess LyondellBasell Industries NV operating return on assets (ROA), we look at the trend over the past 8 quarters.
The operating ROA decreased steadily from Q1 2022 (21.05%) to Q2 2023 (8.90%), indicating a downturn in the company's operating efficiency in generating profits from its assets. This significant decline may raise concerns about the company's operational performance and asset utilization.
Specifically, there was a sharp drop in operating ROA between Q1 2022 and Q3 2022, falling from 21.05% to 16.97%. The decline continued over the following quarters, with consecutive decreases in Q4 2022, Q1 2023, and Q2 2023.
It is worth noting that the operating ROA increased slightly in Q4 2023 (9.65%) compared to the previous quarter, Q3 2023 (9.53%). However, despite this slight improvement, the current level (9.65%) is still significantly lower than the levels observed in earlier periods.
In conclusion, the consistent decline in LyondellBasell Industries NV operating ROA over the past quarters raises concerns about the company's ability to efficiently use its assets to generate operating profits. Investors and stakeholders may want to further investigate the factors contributing to this trend and assess the company's strategies to improve its operational performance and asset utilization.
Peer comparison
Dec 31, 2023