LyondellBasell Industries NV (LYB)

Financial leverage ratio

		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
Total assets	US$ in thousands	37,000,000	36,875,000	36,683,000	36,255,000	36,365,000	36,491,000	37,024,000	37,854,000	36,742,000	38,662,000	37,259,000	35,746,000	35,403,000	31,949,000	31,541,000	31,100,000	30,435,000	30,114,000	31,171,000	29,889,000
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
Financial leverage ratio		2.86	2.79	2.84	2.85	2.88	2.99	3.03	2.98	3.10	3.28	3.54	4.06	4.44	4.37	4.29	4.25	3.78	3.82	2.91	2.95

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 shown a fluctuating trend over the past eight quarters, ranging from a low of 2.79 in Q3 2023 to a high of 3.03 in Q3 2022. The ratio indicates the company's reliance on debt financing versus equity to fund its operations and investments.

Generally, a higher financial leverage ratio suggests higher levels of debt relative to equity, which can increase financial risk but also has the potential to magnify returns on investment. Conversely, a lower ratio indicates a more conservative capital structure with a greater reliance on equity financing.

In the case of LyondellBasell Industries NV, the ratio has been mostly above 2.8, peaking at 3.03 in Q3 2022, pointing towards a relatively high level of leverage. It is important for investors and stakeholders to monitor this ratio over time to assess the company's ability to manage its debt levels and associated risks effectively.