Inventory Disclosure
Adjustment to Inventory: Conversion from LIFO to FIFO
Adjusted Financial Ratios: LIFO vs. FIFO (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

LyondellBasell Industries N.V., balance sheet: inventory

US$ in millions

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Finished goods	3,066)	2,932)	2,575)	2,668)	2,919)
Work-in-process	138)	142)	154)	148)	304)
Raw materials and supplies	1,311)	1,143)	1,080)	1,235)	1,294)
Inventories	4,515)	4,217)	3,809)	4,051)	4,517)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

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Item	Description	The company
Inventories	Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.	LyondellBasell Industries N.V. inventories increased from 2016 to 2017 and from 2017 to 2018.

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in millions

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Adjustment to Inventories
Inventories at LIFO (as reported)	4,515)	4,217)	3,809)	4,051)	4,517)
Add: Inventory LIFO reserve	798)	1,194)	499)	73)	270)
Inventories at FIFO (adjusted)	5,313)	5,411)	4,308)	4,124)	4,787)
Adjustment to Current Assets
Current assets (as reported)	10,566)	11,738)	9,599)	9,789)	11,645)
Add: Inventory LIFO reserve	798)	1,194)	499)	73)	270)
Current assets (adjusted)	11,364)	12,932)	10,098)	9,862)	11,915)
Adjustment to Total Assets
Total assets (as reported)	28,278)	26,206)	23,442)	22,757)	24,283)
Add: Inventory LIFO reserve	798)	1,194)	499)	73)	270)
Total assets (adjusted)	29,076)	27,400)	23,941)	22,830)	24,553)
Adjustment to Total Company Share Of Stockholders’ Equity
Total Company share of stockholders’ equity (as reported)	10,257)	8,949)	6,048)	6,550)	8,314)
Add: Inventory LIFO reserve	798)	1,194)	499)	73)	270)
Total Company share of stockholders’ equity (adjusted)	11,055)	10,143)	6,547)	6,623)	8,584)
Adjustment to Net Income Attributable To The Company Shareholders
Net income attributable to the Company shareholders (as reported)	4,688)	4,879)	3,836)	4,476)	4,174)
Add: Increase (decrease) in inventory LIFO reserve	(396)	695)	426)	(197)	(418)
Net income attributable to the Company shareholders (adjusted)	4,292)	5,574)	4,262)	4,279)	3,756)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

LyondellBasell Industries N.V. inventory value on Dec 31, 2018 would be $5,313) (in millions) if the FIFO inventory method was used instead of LIFO. LyondellBasell Industries N.V. inventories, valued on a LIFO basis, on Dec 31, 2018 were $4,515). LyondellBasell Industries N.V. inventories would have been $798) higher than reported on Dec 31, 2018 if the FIFO method had been used instead.

LyondellBasell Industries N.V., Financial Data: Reported vs. Adjusted

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LyondellBasell Industries N.V., adjusted financial ratios

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Current Ratio
Reported current ratio (LIFO)	1.92	2.46	2.11	2.25	2.14
Adjusted current ratio (FIFO)	2.06	2.71	2.22	2.27	2.19
Net Profit Margin
Reported net profit margin (LIFO)	12.02%	14.15%	13.14%	13.67%	9.15%
Adjusted net profit margin (FIFO)	11.00%	16.16%	14.60%	13.07%	8.24%
Total Asset Turnover
Reported total asset turnover (LIFO)	1.38	1.32	1.24	1.44	1.88
Adjusted total asset turnover (FIFO)	1.34	1.26	1.22	1.43	1.86
Financial Leverage
Reported financial leverage (LIFO)	2.76	2.93	3.88	3.47	2.92
Adjusted financial leverage (FIFO)	2.63	2.70	3.66	3.45	2.86
Return on Equity (ROE)
Reported ROE (LIFO)	45.71%	54.52%	63.43%	68.34%	50.20%
Adjusted ROE (FIFO)	38.82%	54.95%	65.10%	64.61%	43.76%
Return on Assets (ROA)
Reported ROA (LIFO)	16.58%	18.62%	16.36%	19.67%	17.19%
Adjusted ROA (FIFO)	14.76%	20.34%	17.80%	18.74%	15.30%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

Financial ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	LyondellBasell Industries N.V. adjusted current ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	LyondellBasell Industries N.V. adjusted net profit margin ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	LyondellBasell Industries N.V. adjusted total asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	LyondellBasell Industries N.V. adjusted financial leverage ratio decreased from 2016 to 2017 and from 2017 to 2018.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	LyondellBasell Industries N.V. adjusted ROE deteriorated from 2016 to 2017 and from 2017 to 2018.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	LyondellBasell Industries N.V. adjusted ROA improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

LyondellBasell Industries N.V., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Current assets	10,566)	11,738)	9,599)	9,789)	11,645)
Current liabilities	5,513)	4,777)	4,540)	4,349)	5,437)
Liquidity Ratio
Current ratio¹	1.92	2.46	2.11	2.25	2.14
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted current assets	11,364)	12,932)	10,098)	9,862)	11,915)
Current liabilities	5,513)	4,777)	4,540)	4,349)	5,437)
Liquidity Ratio
Adjusted current ratio²	2.06	2.71	2.22	2.27	2.19

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 10,566 ÷ 5,513 = 1.92

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 11,364 ÷ 5,513 = 2.06

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	LyondellBasell Industries N.V. adjusted current ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to the Company shareholders	4,688)	4,879)	3,836)	4,476)	4,174)
Sales and other operating revenues	39,004)	34,484)	29,183)	32,735)	45,608)
Profitability Ratio
Net profit margin¹	12.02%	14.15%	13.14%	13.67%	9.15%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to the Company shareholders	4,292)	5,574)	4,262)	4,279)	3,756)
Sales and other operating revenues	39,004)	34,484)	29,183)	32,735)	45,608)
Profitability Ratio
Adjusted net profit margin²	11.00%	16.16%	14.60%	13.07%	8.24%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

¹ Net profit margin = 100 × Net income attributable to the Company shareholders ÷ Sales and other operating revenues
= 100 × 4,688 ÷ 39,004 = 12.02%

² Adjusted net profit margin = 100 × Adjusted net income attributable to the Company shareholders ÷ Sales and other operating revenues
= 100 × 4,292 ÷ 39,004 = 11.00%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	LyondellBasell Industries N.V. adjusted net profit margin ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenues	39,004)	34,484)	29,183)	32,735)	45,608)
Total assets	28,278)	26,206)	23,442)	22,757)	24,283)
Activity Ratio
Total asset turnover¹	1.38	1.32	1.24	1.44	1.88
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Sales and other operating revenues	39,004)	34,484)	29,183)	32,735)	45,608)
Adjusted total assets	29,076)	27,400)	23,941)	22,830)	24,553)
Activity Ratio
Adjusted total asset turnover²	1.34	1.26	1.22	1.43	1.86

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

¹ Total asset turnover = Sales and other operating revenues ÷ Total assets
= 39,004 ÷ 28,278 = 1.38

² Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 39,004 ÷ 29,076 = 1.34

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	LyondellBasell Industries N.V. adjusted total asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Total assets	28,278)	26,206)	23,442)	22,757)	24,283)
Total Company share of stockholders’ equity	10,257)	8,949)	6,048)	6,550)	8,314)
Solvency Ratio
Financial leverage¹	2.76	2.93	3.88	3.47	2.92
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted total assets	29,076)	27,400)	23,941)	22,830)	24,553)
Adjusted total Company share of stockholders’ equity	11,055)	10,143)	6,547)	6,623)	8,584)
Solvency Ratio
Adjusted financial leverage²	2.63	2.70	3.66	3.45	2.86

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

¹ Financial leverage = Total assets ÷ Total Company share of stockholders’ equity
= 28,278 ÷ 10,257 = 2.76

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Company share of stockholders’ equity
= 29,076 ÷ 11,055 = 2.63

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	LyondellBasell Industries N.V. adjusted financial leverage ratio decreased from 2016 to 2017 and from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to the Company shareholders	4,688)	4,879)	3,836)	4,476)	4,174)
Total Company share of stockholders’ equity	10,257)	8,949)	6,048)	6,550)	8,314)
Profitability Ratio
ROE¹	45.71%	54.52%	63.43%	68.34%	50.20%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to the Company shareholders	4,292)	5,574)	4,262)	4,279)	3,756)
Adjusted total Company share of stockholders’ equity	11,055)	10,143)	6,547)	6,623)	8,584)
Profitability Ratio
Adjusted ROE²	38.82%	54.95%	65.10%	64.61%	43.76%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

¹ ROE = 100 × Net income attributable to the Company shareholders ÷ Total Company share of stockholders’ equity
= 100 × 4,688 ÷ 10,257 = 45.71%

² Adjusted ROE = 100 × Adjusted net income attributable to the Company shareholders ÷ Adjusted total Company share of stockholders’ equity
= 100 × 4,292 ÷ 11,055 = 38.82%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	LyondellBasell Industries N.V. adjusted ROE deteriorated from 2016 to 2017 and from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to the Company shareholders	4,688)	4,879)	3,836)	4,476)	4,174)
Total assets	28,278)	26,206)	23,442)	22,757)	24,283)
Profitability Ratio
ROA¹	16.58%	18.62%	16.36%	19.67%	17.19%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to the Company shareholders	4,292)	5,574)	4,262)	4,279)	3,756)
Adjusted total assets	29,076)	27,400)	23,941)	22,830)	24,553)
Profitability Ratio
Adjusted ROA²	14.76%	20.34%	17.80%	18.74%	15.30%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

¹ ROA = 100 × Net income attributable to the Company shareholders ÷ Total assets
= 100 × 4,688 ÷ 28,278 = 16.58%

² Adjusted ROA = 100 × Adjusted net income attributable to the Company shareholders ÷ Adjusted total assets
= 100 × 4,292 ÷ 29,076 = 14.76%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	LyondellBasell Industries N.V. adjusted ROA improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

LyondellBasell Industries N.V. (NYSE:LYB)

Analysis of Inventory

Inventory Disclosure

Adjustment to Inventory: Conversion from LIFO to FIFO

LyondellBasell Industries N.V., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

LyondellBasell Industries N.V., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)