LyondellBasell Industries NV (LYB)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,121,000 | 3,889,000 | 5,617,000 | 1,427,000 | 3,397,000 |
| Total stockholders’ equity | US$ in thousands | 12,930,000 | 12,615,000 | 11,858,000 | 7,971,000 | 8,044,000 |
| ROE | 16.40% | 30.83% | 47.37% | 17.90% | 42.23% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,121,000K ÷ $12,930,000K
= 16.40%
The return on equity (ROE) of LyondellBasell Industries NV has shown fluctuations over the past five years. The ROE decreased from 42.07% in 2019 to 17.80% in 2020, before increasing to 47.24% in 2021. However, in 2022, the ROE declined to 30.73% and then further dropped to 16.33% in 2023.
The decrease in ROE from 2021 to 2023 may indicate a decline in the company's profitability relative to its equity. A declining ROE could be attributed to factors such as lower net income, increased equity capital, or inefficient use of assets to generate profits.
It is important for stakeholders to monitor these trends closely to understand the drivers behind the changes in ROE and assess the company's overall financial performance and efficiency in utilizing shareholders' equity effectively. Further analysis of the company's financial statements and operational performance may be required to identify the specific factors influencing the ROE fluctuations.
Peer comparison
Dec 31, 2023