LyondellBasell Industries NV (LYB)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 35,746,000 | 37,000,000 | 36,365,000 | 36,742,000 | 35,403,000 |
| Total stockholders’ equity | US$ in thousands | 12,462,000 | 12,930,000 | 12,615,000 | 11,858,000 | 7,971,000 |
| Financial leverage ratio | 2.87 | 2.86 | 2.88 | 3.10 | 4.44 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $35,746,000K ÷ $12,462,000K
= 2.87
The financial leverage ratio of LyondellBasell Industries NV has shown a decreasing trend over the past few years, declining from 4.44 in 2020 to 2.87 in 2024. This indicates that the company has been effectively reducing its reliance on debt to finance its operations and investments. A decreasing financial leverage ratio generally suggests improved financial stability and a lower risk of financial distress, as the company is relying less on borrowed funds. A lower financial leverage ratio also signifies a stronger equity position, which can be positive for the company's overall financial health and creditworthiness. Overall, the decreasing trend in LyondellBasell Industries' financial leverage ratio reflects a prudent approach towards managing its capital structure and financial risk.
Peer comparison
Dec 31, 2024