LyondellBasell Industries NV (LYB)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,053,000 | 5,101,000 | 6,773,000 | 1,559,000 | 4,392,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 12,930,000 | 12,615,000 | 11,858,000 | 7,971,000 | 8,044,000 |
| Return on total capital | 23.61% | 40.44% | 57.12% | 19.56% | 54.60% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,053,000K ÷ ($—K + $12,930,000K)
= 23.61%
The return on total capital for LyondellBasell Industries NV has shown fluctuations over the past five years. In 2023, the return on total capital was 14.70%, indicating the company generated a return of 14.70% on its total invested capital. This represented a decrease compared to the previous year, where the return on total capital was 21.62%.
Looking further back, the return on total capital in 2021 was significantly higher at 33.48%, indicating strong efficiency in generating returns from its total capital. However, in 2020, the return on total capital dropped to 10.02%, reflecting lower profitability or efficiency in capital utilization compared to the preceding years.
In 2019, the return on total capital was 21.59%, similar to the level observed in 2022. It is important for LyondellBasell Industries NV to consistently monitor and improve its return on total capital to ensure efficient use of its capital resources and drive sustainable profitability.
Peer comparison
Dec 31, 2023