LyondellBasell Industries NV (LYB)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,552,000 | 2,289,000 | 2,114,000 | 3,043,000 | 3,889,000 | 4,262,000 | 5,452,000 | 5,867,000 | 5,617,000 | 5,746,000 | 4,098,000 | 2,353,000 | 1,427,000 | 1,184,000 | 2,035,000 | 2,724,000 | 3,397,000 | 3,477,000 | 3,625,000 | 4,276,000 |
| Total stockholders’ equity | US$ in thousands | 12,930,000 | 13,205,000 | 12,931,000 | 12,721,000 | 12,615,000 | 12,191,000 | 12,230,000 | 12,698,000 | 11,858,000 | 11,800,000 | 10,524,000 | 8,800,000 | 7,971,000 | 7,306,000 | 7,358,000 | 7,324,000 | 8,044,000 | 7,888,000 | 10,721,000 | 10,138,000 |
| ROE | 12.00% | 17.33% | 16.35% | 23.92% | 30.83% | 34.96% | 44.58% | 46.20% | 47.37% | 48.69% | 38.94% | 26.74% | 17.90% | 16.21% | 27.66% | 37.19% | 42.23% | 44.08% | 33.81% | 42.18% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,552,000K ÷ $12,930,000K
= 12.00%
The return on equity (ROE) of LyondellBasell Industries NV has exhibited a declining trend over the past eight quarters, starting at a high of 46.09% in Q1 2022 and decreasing to 16.33% in Q4 2023. This downward trajectory suggests a diminishing ability of the company to generate profit from its shareholders' equity.
The ROE peaked at 46.09% in Q1 2022, indicating an efficient utilization of equity to generate profit. However, the substantial decrease to 16.33% in Q4 2023 reflects a significant decline in this efficiency over time. The decline in ROE could be indicative of issues such as increasing expenses, declining profitability, or suboptimal capital allocation.
It is crucial for stakeholders to closely monitor and investigate the factors contributing to the decreasing ROE to assess the company's financial health and sustainability. Further analysis of the company's financial statements and business operations is recommended to identify the root causes of the declining ROE and to develop strategies for improvement.
Peer comparison
Dec 31, 2023
See also:
LyondellBasell Industries NV Return on Equity (ROE) (Quarterly Data)