LyondellBasell Industries NV (LYB)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.87 | 2.72 | 2.76 | 2.82 | 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 |
The solvency ratios of LyondellBasell Industries NV, based on the provided data, show consistently low levels of debt relative to its assets, capital, and equity.
- Debt-to-assets ratio: The debt-to-assets ratio is consistently reported as 0.00 from March 2020 to December 2024, indicating that the company has no debt in relation to its total assets. This implies that LyondellBasell Industries NV has a very strong financial position in terms of solvency, as it does not rely heavily on borrowing to finance its operations.
- Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio remains stable at 0.00 throughout the period from March 2020 to December 2024. This indicates that the company's debt obligations are negligible compared to its total capital, which consists of both debt and equity.
- Debt-to-equity ratio: The debt-to-equity ratio also consistently shows 0.00 from March 2020 to December 2024. This implies that LyondellBasell Industries NV has no debt in relation to its equity, further highlighting its strong solvency position and financial stability.
- Financial leverage ratio: The financial leverage ratio shows a decreasing trend over the years, starting at 4.25 in March 2020 and declining to 2.87 by December 2024. This indicates that the company has been reducing its reliance on debt to finance its operations, which is a positive sign for its solvency and financial health.
Overall, the solvency ratios of LyondellBasell Industries NV suggest that the company is in a strong financial position with minimal debt relative to its assets, capital, and equity. The decreasing trend in the financial leverage ratio also indicates prudent management of its debt levels over time.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.14 | 6.52 | 6.80 | 6.24 | 6.69 | 7.31 | 7.72 | 12.47 | 17.21 | 16.45 | 17.87 | 16.06 | 13.83 | 12.61 | 9.73 | 5.80 | 4.54 | 4.95 | 6.77 | 10.09 |
The interest coverage ratio is a measure of a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.
Analyzing the interest coverage ratio of LyondellBasell Industries NV over the period from March 31, 2020, to December 31, 2024, we can observe a varying trend.
The interest coverage ratio was 10.09 on March 31, 2020, signifying that the company's operating income was 10.09 times its interest expenses. The ratio decreased to 4.54 on December 31, 2020, but then gradually improved, reaching its peak at 17.87 on June 30, 2022.
However, the interest coverage ratio started to decline after June 30, 2022, and was at 4.14 on December 31, 2024. This downward trend indicates a potential decrease in the company's ability to cover its interest expenses with its operating income during this period.
Overall, it is essential for potential and existing investors, creditors, and other stakeholders to closely monitor the interest coverage ratio of LyondellBasell Industries NV to assess its financial health and ability to meet its debt obligations in the future.
See also:
LyondellBasell Industries NV Solvency Ratios (Quarterly Data)