LyondellBasell Industries NV (LYB)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 37,000,000 | 36,365,000 | 36,742,000 | 35,403,000 | 30,435,000 |
| Total stockholders’ equity | US$ in thousands | 12,930,000 | 12,615,000 | 11,858,000 | 7,971,000 | 8,044,000 |
| Financial leverage ratio | 2.86 | 2.88 | 3.10 | 4.44 | 3.78 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $37,000,000K ÷ $12,930,000K
= 2.86
The financial leverage ratio of LyondellBasell Industries NV has exhibited fluctuations over the past five years. The ratio decreased from 4.44 in 2020 to 2.86 in 2023, with a general decreasing trend observed from 2020 to 2023. This indicates that the company has been reducing its reliance on debt financing relative to equity over the years.
Although the financial leverage ratio decreased from 2020 to 2023, it remained above the levels seen in 2021 and 2022, which were 3.10 and 2.88, respectively. This suggests that while the company has made efforts to improve its leverage position, it still maintains a relatively higher level of debt in its capital structure compared to recent years.
Overall, the decreasing trend in the financial leverage ratio of LyondellBasell Industries NV indicates a shift towards a more conservative financing strategy, potentially aimed at reducing financial risk and enhancing the company's financial stability over time.
Peer comparison
Dec 31, 2023