LyondellBasell Industries NV (LYB)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $12,930,000K
= 0.00
The debt-to-equity ratio of LyondellBasell Industries NV has been fluctuating over the past five years. In 2023, the ratio decreased to 0.87 from 0.90 in 2022, indicating a lower reliance on debt compared to equity in financing the company's operations. This change suggests a potentially improved financial position in terms of leverage and solvency.
Comparing to 2021, the debt-to-equity ratio continued to decline from 0.98 to 0.87 in 2023, which reflects a trend towards a more balanced capital structure and reduced financial risk. The company appears to be managing its debt levels more effectively while maintaining a solid equity base to support its operations.
However, it is worth noting that there was a significant spike in the debt-to-equity ratio in 2020, reaching 2.00, which may have raised concerns about the company's financial health and leverage at that time. The subsequent decrease in the ratio over the years indicates efforts to deleverage and strengthen the balance sheet.
Overall, the declining trend in the debt-to-equity ratio of LyondellBasell Industries NV over the past few years suggests a positive shift towards a more conservative debt utilization strategy and a more sustainable capital structure, potentially enhancing the company's long-term financial stability and resilience.
Peer comparison
Dec 31, 2023