LyondellBasell Industries N.V. (NYSE:LYB)

Current Income Tax Expense

The current income tax expense displayed notable fluctuations over the five-year period. Starting at 1,363 million USD in 2014, it increased to 1,549 million USD in 2015, representing a significant rise. However, there was a pronounced decline in 2016 to 1,029 million USD, followed by a moderate increase to 1,185 million USD in 2017. In 2018, the current tax expense sharply decreased to 353 million USD, marking the lowest level in the observed period.

Deferred Income Tax Expense

The deferred income tax expense exhibited more variability and volatility compared to the current tax expense. It began at 177 million USD in 2014 and remained relatively stable in 2015 at 181 million USD. In 2016, the deferred tax expense doubled to 357 million USD, indicating increased deferred tax liabilities or timing differences. A major shift occurred in 2017 when the deferred tax expense became negative at -587 million USD, suggesting a deferred tax benefit or reversal of previously recorded deferred taxes. In 2018, the deferred tax expense reverted to a positive 260 million USD, indicating an increase once again.

Provision for Income Taxes

The total provision for income taxes, which is the sum of current and deferred expenses, generally reflected the combined behavior of the two components. From 2014 to 2015, it increased from 1,540 million USD to 1,730 million USD. In 2016, the provision decreased to 1,386 million USD, corresponding to the drop in current taxes despite a rise in deferred expenses. A significant decline was observed in 2017, when the provision dropped to 598 million USD, strongly influenced by the deferred tax benefit. In 2018, the provision slightly increased to 613 million USD but remained substantially lower than previous years.

Overall Trends and Insights

The data reveals a downward trend in both current and total tax provisions in the last two years, particularly in 2017 and 2018. The sharply negative deferred tax expense in 2017 is a key factor in the reduction of the overall tax provision that year. This could indicate changes in tax structure, tax planning strategies, or recognition of deferred tax assets/liabilities. The fluctuations in deferred tax expenses also suggest that timing differences had a significant and varying impact on the company's tax liabilities during this period. The consistent decline in current tax expenses in the final year points to either reduced taxable income or changes in tax rates or regulations relevant to the company.

The financial data reveals various trends in tax-related assets and liabilities, as well as other associated balance sheet components over the five-year period ending December 31, 2018.

Tax attributes

Displayed a consistent decline from 409 million USD in 2014 to 180 million USD in 2018, indicating a reduction in the reported tax benefits or assets over time.

Employee benefit plans

Decreased steadily from 468 million USD in 2014 to 315 million USD in 2017, with a slight increase to 334 million USD by 2018, suggesting relative stabilization or minor growth in obligations related to employee benefits.

Other assets

Varied over the years, starting at 93 million USD in 2014, dropping to 72 million in 2016, then rising to 97 million in 2017 before declining again to 76 million in 2018, showing some volatility in this category.

Deferred tax assets

Demonstrated a consistent downward trend from 970 million USD in 2014 to 590 million USD in 2018, reflecting a decrease in the value of deferred tax assets held.

Deferred tax asset valuation allowances

Fluctuated moderately, beginning at a negative 134 million USD in 2014 and moving to negative 120 million USD by 2018, with the least negative value of negative 96 million USD occurring during 2016 and 2017. This indicates adjustments in valuation allowances, though generally stable.

Net deferred tax assets

Exhibited a declining pattern from 836 million USD in 2014 to 470 million USD in 2018, mirroring the decrease in gross deferred tax assets and reflecting reduced net deferred tax benefits.

Accelerated tax depreciation

Showed increasing negative values over the period, starting at negative 1,464 million USD in 2014, fluctuating with a peak negative of negative 1,910 million USD in 2016, and ending at negative 1,809 million USD in 2018. This may signify changing depreciation schedules or asset base impacts.

Investment in joint venture partnerships

Consistently negative values, decreasing in absolute terms from negative 276 million USD in 2014 to negative 147 million USD in 2018, suggesting diminishing investments or valuations in joint ventures.

Intangible assets

Decreased from negative 264 million USD in 2014 to a low of negative 48 million USD in 2017, before increasing negatively again to negative 151 million USD in 2018, indicating fluctuations in the intangible asset base.

Inventory

Presented a decreasing trend from negative 528 million USD in 2014 to negative 266 million USD in 2017, followed by a slight increase in negative value to negative 285 million USD in 2018, implying variability in inventory valuation or quantity.

Other liabilities

Varied over the years, initially increasing negatively from negative 58 million USD in 2014 to negative 124 million USD in 2015, then decreasing in negative position to negative 22 million USD by 2018, suggesting changing short-term obligations.

Deferred tax liabilities

Remained significantly negative throughout the period, fluctuating between negative 2,774 million USD in 2016 and negative 2,077 million USD in 2017, ending at negative 2,414 million USD in 2018. This illustrates a large and somewhat variable deferred tax liability balance.

Net deferred tax assets (liabilities)

Showed a negative and growing trend, from negative 1,754 million USD in 2014 reaching negative 2,139 million USD in 2016, improving slightly in 2017 to negative 1,565 million USD, then declining again to negative 1,944 million USD in 2018. This indicates net deferred tax liabilities outweigh net deferred tax assets and that this imbalance has fluctuated over time.

The deferred tax assets and liabilities over the five-year period reveal distinct trends.

Deferred Tax Assets, Current

The current deferred tax assets were reported at 67 million US dollars in 2014 but were not documented in subsequent years. This absence may indicate a reclassification or a reduction to immaterial levels.

Deferred Tax Assets, Long-Term

This item demonstrated a consistent downward trend from 271 million US dollars in 2014 to 31 million in 2018. The decrease is particularly pronounced between 2016 and 2017, where the value dropped sharply from 192 million to 90 million US dollars, continuing to decline thereafter.

Deferred Tax Liability, Current

Current deferred tax liabilities were recorded only in 2014 at 469 million US dollars, with no values reported in the following years. This may suggest a reclassification, settlement, or significant reduction.

Deferred Tax Liability, Long-Term

The long-term deferred tax liabilities fluctuated over the period, starting at 1623 million US dollars in 2014, increasing to 2127 million in 2015, and further to 2331 million in 2016. Subsequently, it declined to 1655 million in 2017 but rose again to 1975 million in 2018. These movements indicate volatility and adjustments in long-term tax obligations.

Overall, long-term deferred tax assets decreased substantially, while long-term deferred tax liabilities showed variability with an upward bias after 2017. The absence of current deferred tax items in most years suggests changes in classification or accounting treatment. The data imply a net increase in deferred tax liabilities relative to assets over the analyzed period.

The financial data reflects notable trends in the reported and deferred income tax adjusted figures for the examined periods. Overall, both reported and adjusted current assets displayed a minor decline from 2014 through 2016, followed by a rebound in 2017; however, there was a subsequent decrease in 2018 ending below the 2017 peak. This suggests a period of asset management adjustments with possible operational shifts impacting liquidity.

Total assets, both reported and adjusted, exhibited a consistent upward trajectory from 2015 onward, with the reported total assets increasing from approximately 22.8 billion to 28.3 billion US dollars by 2018, indicating asset expansion and potential investment or acquisition activities. The gap between reported and adjusted total assets remained relatively stable, implying limited impact from income tax revaluations on asset totals.

Current liabilities presented mixed patterns: reported current liabilities decreased significantly in 2015, then showed gradual increases through 2018, ending higher than the 2014 level. Adjusted current liabilities followed a similar pattern but began at a lower baseline in 2014, adjusting upward in line with reported figures thereafter. This suggests some reclassification or deferred tax adjustments affecting short-term obligations.

Total liabilities, in contrast, demonstrated steady growth across the periods, with reported figures rising from about 15.9 billion in 2014 to nearly 17.9 billion in 2018. Notably, adjusted total liabilities were consistently lower than reported liabilities but increased gradually, reflecting deferred tax impacts reducing the recognized liabilities in adjusted accounts.

Shareholders’ equity attributable to the company increased overall, with reported equity declining initially from 2014 to 2016 before recovering sharply through 2018, surpassing the 2014 level. Adjusted equity values were higher than reported throughout the period and exhibited a similar recovery trend. The adjusted equity growth suggests beneficial effects of deferred tax adjustments on the equity base.

Net income attributable to the company shareholders showed positive performance with fluctuations. Reported net income rose in 2015, dipped in 2016, then peaked in 2017 before a slight decline in 2018. Adjusted net income followed a similar pattern but maintained higher values consistently, implying that deferred tax adjustments contributed to an improved reflection of profitability.

In summary, the trends indicate that deferred income tax adjustments generally result in higher asset and equity values and lower liabilities compared to reported figures. The company displayed asset growth and improved equity position over time despite some fluctuations in net income and current liabilities. These patterns reflect effective tax planning and possibly strategic financial management influencing both reported and adjusted financial positions.

Current Assets

Declined from 2014 to 2016, recovered in 2017, then decreased in 2018; adjusted values closely matched reported figures.

Total Assets

Steadily increased from 2015 to 2018, with adjusted totals slightly lower than reported but following the same growth trend.

Current Liabilities

Reported liabilities decreased sharply in 2015, then increased through 2018; adjusted liabilities started lower in 2014 but trended similarly post-2015.

Total Liabilities

Displayed continuous growth from 2014 to 2018, with adjusted values consistently below reported, indicating deferred tax effects.

Shareholders’ Equity

Reported equity declined initially then recovered strongly by 2018; adjusted equity was higher throughout, showing beneficial deferred tax impact.

Net Income

Fluctuated across the years with a peak in 2017; adjusted net income consistently exceeded reported figures, suggesting positive influence of tax adjustments.

Current Ratio

The reported current ratio showed an initial increase from 2.14 in 2014 to a peak of 2.46 in 2017, before declining to 1.92 in 2018. The adjusted current ratio mirrored this pattern exactly, indicating that deferred income tax adjustments had minimal effect on this liquidity measure over the observed period.

Net Profit Margin

The reported net profit margin experienced a rise from 9.15% in 2014 to a high of 14.15% in 2017, followed by a decline to 12.02% in 2018. The adjusted net profit margin values were generally higher than the reported figures in the earlier years, peaking at 14.37% in 2016, then decreasing to 12.69% in 2018. This suggests that the adjustments slightly enhanced profitability indicators prior to 2017, with a narrowing gap thereafter.

Total Asset Turnover

Total asset turnover declined steadily from 1.88 in 2014 to 1.24 in 2016, with a modest recovery to 1.38 by 2018. Adjusted values closely paralleled reported figures, displaying only marginally higher turnover ratios. This trend denotes a gradual reduction in asset utilization efficiency in the earlier years, followed by slight improvement towards the end of the period.

Financial Leverage

Reported financial leverage increased notably from 2.92 in 2014 to 3.88 in 2016, then decreased sharply to 2.76 by 2018. The adjusted financial leverage also rose from 2.38 to 2.84 between 2014 and 2016, before declining to 2.32 in 2018. The deferred tax adjustments consistently reduced the leverage ratios in comparison to reported figures, indicating a conservative impact on perceived leverage.

Return on Equity (ROE)

ROE trends showed a peak in 2015 with 68.34% reported and 54.97% adjusted, followed by a gradual decrease over subsequent years to 45.71% reported and 40.55% adjusted in 2018. The adjustments consistently resulted in lower ROE values across all years, highlighting the dampening effect of deferred income tax factors on equity returns.

Return on Assets (ROA)

Reported ROA peaked at 19.67% in 2015, declined to 16.36% in 2016, then oscillated slightly to 16.58% in 2018. Adjusted ROA maintained a similar trajectory but with slightly higher values than reported from 2014 through 2016, before converging more closely in later years. This suggests that adjustments had a minor positive impact on asset profitability earlier, but this effect diminished over time.

Current Assets

The reported current assets exhibited a decline from US$11,645 million in 2014 to US$9,599 million in 2016, followed by an increase to US$11,738 million in 2017. Subsequently, a decrease to US$10,566 million was observed in 2018. The adjusted current assets matched reported values except in 2014, where the adjustment reduced assets slightly to US$11,578 million.

Current Liabilities

Reported current liabilities showed a general downward trend from US$5,437 million in 2014 to a low of US$4,349 million in 2015. Thereafter, liabilities gradually rose each year to US$5,513 million in 2018. Adjusted liabilities followed the reported values from 2015 onwards but were slightly lower in 2014 at US$4,968 million compared to reported figures.

Current Ratio

The reported current ratio, which measures short-term liquidity, increased from 2.14 in 2014 to 2.25 in 2015, then declined to 2.11 in 2016. It improved notably to 2.46 in 2017 before dropping to 1.92 in 2018. The adjusted current ratio scores were equal to reported values except in 2014, where the adjusted ratio was higher at 2.33, reflecting the impact of deferred tax adjustments on current assets and liabilities.

Analysis Summary

Overall, current assets and liabilities demonstrated fluctuations with a notable dip in current assets and liabilities during the 2015-2016 period, followed by a recovery phase in 2017 and some decline or increase respectively in 2018. The current ratio trends suggest liquidity was relatively stable with a peak in 2017 but weakened by 2018. Adjustments related to deferred income taxes had a moderate impact mainly in 2014, slightly increasing liquidity measures. These patterns indicate variability in short-term financial stability, with 2017 being the strongest year for liquidity and 2018 reflecting a contraction in this aspect.

Net income attributable to the Company shareholders

The reported net income showed an overall increasing trend over the five-year period, rising from 4,174 million US dollars in 2014 to 4,688 million US dollars in 2018. A peak was observed in 2017 at 4,879 million dollars, followed by a slight decrease in 2018. The adjusted net income followed a similar pattern, increasing from 4,351 million dollars in 2014 to 4,948 million dollars in 2018, with a peak in 2018. The adjustment generally resulted in higher net income figures compared to the reported values across all years.

Net profit margins

The reported net profit margin demonstrated variability over the period. It increased significantly from 9.15% in 2014 to a high of 14.15% in 2017, before decreasing to 12.02% in 2018. The adjusted net profit margin was consistently higher than the reported margin, peaking at 14.37% in 2016. After 2016, the adjusted margin exhibited a declining trend, falling to 12.69% in 2018. This indicates that adjustments related to income tax had a notable impact on profitability measures.

Overall observations

The data indicates that adjustments for deferred and annual income taxes provided a consistently more favorable view of profitability, as evidenced by higher adjusted net income and profit margins compared to reported values. Both reported and adjusted net income saw growth from 2014 to 2017, with adjusted net income continuing to grow into 2018 while reported net income slightly declined. Profit margins reflected similar patterns, with some volatility but generally higher margins on an adjusted basis. The divergence between reported and adjusted figures highlights the impact of income tax adjustments on the financial performance assessment over the analyzed period.

The financial data reveals notable trends regarding total assets and asset turnover ratios over the five-year period under review. Both the reported and adjusted total assets exhibit an overall increasing trajectory, suggesting expansion in asset base.

Total Assets

The reported total assets decreased slightly from 24,283 million US dollars in 2014 to 22,757 million in 2015, indicating a contraction in that year. However, from 2015 onwards, a steady recovery and growth is observed, with reported total assets rising consistently each year, reaching 28,278 million by the end of 2018. The adjusted total assets mirror this pattern closely, beginning at 23,945 million in 2014, dipping to 22,552 million in 2015, and then progressively increasing to 28,247 million in 2018. The minor difference between reported and adjusted figures suggests limited impact from deferred income tax adjustments on the reported asset base.

Total Asset Turnover Ratios

Both reported and adjusted total asset turnover ratios show a declining trend from 2014 through 2016, beginning at 1.88 (reported) and 1.90 (adjusted) in 2014, falling to 1.24 and 1.26 respectively in 2016. This decline indicates reduced efficiency in generating sales revenues from assets during this period. Post-2016, the turnover ratios recover modestly, increasing to 1.32 in 2017 and continuing to 1.38 in 2018 for both reported and adjusted figures. The parallel movement between reported and adjusted ratios underscores consistency in the operational performance assessment despite tax adjustments.

In summary, the data reflects a phase of asset base contraction in 2015 followed by steady growth, while asset utilization efficiency weakened initially but showed improvement after 2016. The close alignment between reported and adjusted figures throughout the period implies that deferred income tax adjustments have a minimal effect on key asset metrics and their derived ratios.

The analysis of the financial data reveals several notable trends in the company's asset base, equity, and leverage from 2014 to 2018.

Total Assets

Both reported and adjusted total assets demonstrate an overall growth trend over the five-year period. Reported total assets increased from US$24,283 million in 2014 to US$28,278 million in 2018, marking a steady rise with a minor dip in 2015 followed by consistent growth. Adjusted total assets follow a similar trajectory, growing from US$23,945 million to US$28,247 million in the same period, closely tracking the reported values but slightly lower, reflecting adjustments related to income tax considerations.

Company Share of Stockholders’ Equity

The reported share of stockholders’ equity experienced volatility and a dip between 2014 and 2016, falling from US$8,314 million to US$6,048 million, before rebounding markedly to US$10,257 million by 2018. The adjusted equity figures show a similar pattern but at consistently higher valuations than the reported equity, starting at US$10,068 million in 2014, decreasing to US$8,187 million in 2016, and then rising to US$12,201 million by 2018. This suggests that the adjustments for deferred tax positions had a strengthening effect on equity values, especially in the latter years.

Financial Leverage

Financial leverage ratios exhibit inverse trends based on reported and adjusted figures. The reported financial leverage increased significantly from 2.92 in 2014 to a peak of 3.88 in 2016, followed by a decrease to 2.76 in 2018. In comparison, the adjusted financial leverage ratios were consistently lower, indicating less leverage when tax adjustments are taken into account, rising from 2.38 in 2014 to 2.84 in 2016, then decreasing to 2.32 by 2018. The decline in financial leverage after 2016 suggests a relatively stronger equity base or reduced reliance on debt financing over the final two years evaluated.

Overall, the data indicate resilience and growth in the company's asset and equity bases with enhanced equity strength after income tax-related adjustments. The leverage trends imply improved financial stability post-2016, with the adjusted figures presenting a more conservative and potentially more accurate perspective on the company’s financial risk profile.

The financial data over the five-year period reveals discernible patterns and shifts in profitability, equity, and returns for the company after adjustments for reported and deferred income taxes.

Net Income Trends

The reported net income attributable to the company's shareholders shows fluctuations, increasing from 4,174 million USD at the end of 2014 to a peak of 4,879 million USD in 2017, before slightly decreasing to 4,688 million USD in 2018. The adjusted net income generally follows a similar upward trend but demonstrates higher values in each respective year compared to reported figures, reaching its highest point of 4,948 million USD in 2018. This suggests that the adjustments for deferred taxes likely provide a more favorable representation of the company’s profitability.

Equity Trends

The reported total company shareholders’ equity presents a variable trend with an initial decline from 8,314 million USD in 2014 to 6,048 million USD by 2016, followed by a substantial increase to 10,257 million USD by 2018. Adjusted equity similarly declines initially but remains consistently higher than reported figures, culminating at 12,201 million USD in 2018. The divergence between reported and adjusted equity values implies significant deferred tax effects impacting shareholder equity.

Return on Equity (ROE) Trends

Reported ROE exhibits a general downward trajectory after peaking remarkably at 68.34% in 2015, dropping to 45.71% in 2018. Adjusted ROE follows a parallel declining trend from 43.22% in 2014 to 40.55% in 2018, reflecting a more moderated but consistent profitability relative to equity. The higher reported ROE values during early years may be influenced by lower equity figures before adjustments, and the reduction over time indicates a normalization or decreasing efficiency in generating returns on shareholder equity.

Overall, the data indicates that while the company's adjusted profitability and equity have grown somewhat steadily, the return on equity has diminished in both reported and adjusted forms. The adjustments for income tax effects particularly serve to moderate reported profitability and equity figures, offering a more conservative perspective on the company’s financial performance over the observed period.

The financial data reveals several important trends in the company’s performance over the five-year period ending in 2018. There are noticeable fluctuations in both reported and adjusted figures, reflecting variations in profitability, asset base, and returns.

Net Income Trends

The reported net income attributable to the Company shareholders experienced a rise from 2014 to 2015, increasing from 4,174 million US dollars to 4,476 million US dollars. Thereafter, it declined significantly in 2016 to 3,836 million US dollars before recovering substantially in 2017 with 4,879 million US dollars. However, in 2018, reported net income slightly decreased to 4,688 million US dollars. Adjusted net income follows a similar pattern, with growth from 4,351 million US dollars in 2014 to 4,657 million US dollars in 2015, a drop in 2016 to 4,193 million US dollars, followed by a moderate recovery in 2017 (4,292 million US dollars) and an increase in 2018 to the highest value in the series at 4,948 million US dollars.

Asset Base Dynamics

The reported total assets show a decreasing trend from 24,283 million US dollars in 2014 to 22,757 million US dollars in 2015, before gradually increasing year over year to 28,278 million US dollars by 2018. The adjusted total assets mirror this trajectory closely, starting at 23,945 million US dollars in 2014, dipping slightly in 2015, and then rising steadily to 28,247 million US dollars in 2018. This upward trend in assets from 2015 onwards indicates expansion or accumulation of the company’s asset base during this period.

Return on Assets (ROA) Analysis

Reported ROA exhibits a peak in 2015 at 19.67%, followed by a decrease to 16.36% in 2016, a rebound to 18.62% in 2017, and a decline again to 16.58% in 2018. The adjusted ROA starts at a higher value than the reported ROA in 2014 (18.17% vs. 17.19%), reaches its maximum in 2015 (20.65%), then declines more sharply to 18.03% in 2016 and further down to 16.43% in 2017, before slightly increasing to 17.52% in 2018. The adjusted ROA consistently remains above the reported ROA except in 2017, suggesting that adjustments positively impact the perceived efficiency and profitability of the asset base in most periods.

Overall, the company’s profitability as measured by net income shows cyclical behavior with a low point in 2016 followed by recovery. The asset base grows steadily after 2015, indicating possible strategic investments or capital accumulation. Returns on assets, while generally high, demonstrate some volatility but maintain healthy levels above 16% through most years. The adjustments made to net income and total assets appear to enhance the financial performance metrics, particularly ROA, reinforcing a more favorable financial position when adjusted figures are considered.