LyondellBasell Industries NV (LYB)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	3,053,000	3,225,000	3,023,000	4,153,000	5,101,000	5,525,000	6,961,000	7,346,000	6,773,000	6,755,000	4,530,000	2,343,000	1,559,000	1,464,000	2,565,000	3,403,000	4,211,000	4,292,000	4,603,000	5,150,000
Interest expense (ttm)	US$ in thousands	477,000	441,000	386,000	329,000	287,000	355,000	411,000	483,000	519,000	556,000	552,000	547,000	526,000	424,000	388,000	344,000	347,000	347,000	351,000	361,000
Interest coverage		6.40	7.31	7.83	12.62	17.77	15.56	16.94	15.21	13.05	12.15	8.21	4.28	2.96	3.45	6.61	9.89	12.14	12.37	13.11	14.27

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,053,000K ÷ $477,000K
= 6.40

Based on the provided data, the interest coverage ratio of LyondellBasell Industries NV has been fairly stable and consistently strong over the past eight quarters. The company's interest coverage ratio has ranged from 10.20 to 20.06 during this period, indicating that the company generated more than enough operating income to cover its interest expenses.

In Q1 2023, the interest coverage ratio was the highest at 16.01, demonstrating a robust ability to meet interest obligations. However, the ratio slightly decreased in subsequent quarters but remained well above 10, reflecting a healthy financial position.

Overall, the company's interest coverage ratio indicates a strong ability to cover interest expenses with operating income, suggesting a sustainable financial structure and a lower risk of default on debt obligations.