LyondellBasell Industries NV (LYB)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,360,000 | 2,114,000 | 3,882,000 | 5,610,000 | 1,420,000 |
| Total stockholders’ equity | US$ in thousands | 12,462,000 | 12,930,000 | 12,615,000 | 11,858,000 | 7,971,000 |
| ROE | 10.91% | 16.35% | 30.77% | 47.31% | 17.81% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,360,000K ÷ $12,462,000K
= 10.91%
The return on equity (ROE) for LyondellBasell Industries NV has shown fluctuations over the past five years. In December 2020, the ROE stood at 17.81%, indicating that for every dollar of shareholders' equity, the company generated a return of 17.81%. This figure significantly increased to 47.31% by December 2021, reflecting a substantial improvement in the company's profitability and efficiency in utilizing shareholder funds.
By December 2022, the ROE slightly decreased to 30.77%, which, although lower than the previous year, still indicates a strong performance in generating profits relative to the shareholders' equity invested. However, there was a further decline in the ROE to 16.35% by December 2023, suggesting a decrease in the company's ability to generate returns on equity efficiently.
The trend continued in December 2024, with the ROE dropping to 10.91%. This significant decline may raise concerns about the company's profitability and operational efficiency in utilizing shareholders' equity. It is important for stakeholders to closely monitor the company's performance and strategies to improve its ROE in order to ensure sustainable growth and value creation for shareholders.
Peer comparison
Dec 31, 2024