LyondellBasell Industries NV (LYB)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,053,000 | 3,225,000 | 3,023,000 | 4,153,000 | 5,101,000 | 5,525,000 | 6,961,000 | 7,346,000 | 6,773,000 | 6,755,000 | 4,530,000 | 2,343,000 | 1,559,000 | 1,464,000 | 2,565,000 | 3,403,000 | 4,211,000 | 4,292,000 | 4,603,000 | 5,150,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 23.61% | 24.42% | 23.38% | 32.65% | 40.44% | 45.32% | 56.92% | 57.85% | 57.12% | 57.25% | 43.04% | 26.62% | 19.56% | 20.04% | 34.86% | 46.46% | 52.35% | 54.41% | 42.93% | 50.80% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,053,000K ÷ ($—K + $12,930,000K)
= 23.61%
The return on total capital of LyondellBasell Industries NV has shown a decreasing trend over the past eight quarters. Q1 2022 had the highest return on total capital at 34.65%, followed by Q2 2022 at 33.25%. However, the return on total capital has been steadily declining since then, reaching its lowest point in Q2 2023 at 13.18%. Despite a slight increase in Q3 2023 to 14.37%, the return on total capital in Q4 2023 remained relatively low at 14.70%.
This decreasing trend in the return on total capital indicates that the company may be facing challenges in generating profits relative to the total capital employed in its operations. It is important for LyondellBasell Industries NV to closely monitor and assess the efficiency of its capital allocation and operational performance to improve its return on total capital in the future.
Peer comparison
Dec 31, 2023