LyondellBasell Industries NV (LYB)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,084,000 | 3,104,000 | 4,836,000 | 7,545,000 | 2,228,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 12,462,000 | 12,930,000 | 12,615,000 | 11,858,000 | 7,971,000 |
| Return on total capital | 16.72% | 24.01% | 38.34% | 63.63% | 27.95% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,084,000K ÷ ($—K + $12,462,000K)
= 16.72%
The return on total capital for LyondellBasell Industries NV has fluctuated over the years based on the provided data. In December 2020, the return on total capital was 27.95%, indicating the company generated $0.27 in profit for every $1 of total capital invested. This metric significantly improved to 63.63% by December 2021, showcasing a strong growth in profitability and efficient capital utilization. However, in December 2022, the return on total capital decreased to 38.34%, suggesting a slight decline in profitability compared to the previous year. Subsequently, by December 2023, the return on total capital further decreased to 24.01%, indicating a continued downturn in profitability and capital efficiency. In the latest data point from December 2024, the return on total capital stands at 16.72%, demonstrating a further decline in profitability and potential challenges in generating returns on invested capital. Overall, the company's return on total capital shows variability over the years, with periods of strong performance followed by declines in profitability.
Peer comparison
Dec 31, 2024