LyondellBasell Industries NV (LYB)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,993,000 | 3,171,000 | 3,350,000 | 3,044,000 | 3,190,000 | 3,223,000 | 2,979,000 | 4,101,000 | 4,938,000 | 5,838,000 | 7,344,000 | 7,759,000 | 7,179,000 | 7,011,000 | 5,369,000 | 3,170,000 | 2,387,000 | 2,100,000 | 2,627,000 | 3,472,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 12,462,000 | 13,716,000 | 13,449,000 | 12,979,000 | 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 |
| Return on total capital | 15.99% | 23.12% | 24.91% | 23.45% | 24.67% | 24.41% | 23.04% | 32.24% | 39.14% | 47.89% | 60.05% | 61.10% | 60.54% | 59.42% | 51.02% | 36.02% | 29.95% | 28.74% | 35.70% | 47.41% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,993,000K ÷ ($—K + $12,462,000K)
= 15.99%
The return on total capital for LyondellBasell Industries NV has fluctuated over the past few years, ranging from a high of 61.10% in March 31, 2022, to a low of 15.99% in December 31, 2024.
In general, a higher return on total capital indicates that the company is effectively utilizing its capital to generate profits. The company saw significant improvements in its return on total capital from 2020 to 2022, peaking in the first quarter of 2022.
However, there has been a gradual decline in the return on total capital since then, with a noticeable decrease in the most recent quarter ending December 31, 2024. This could potentially indicate challenges in maintaining profitability or optimizing the use of capital in the business.
Overall, it is important for LyondellBasell Industries NV to monitor and manage its return on total capital to ensure efficient capital allocation and sustainable profitability in the long term.
Peer comparison
Dec 31, 2024