Operating Profit Margin
since 2011
Calculation
LyondellBasell Industries N.V., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Sales and other operating revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2018 | 13.41% | = | 100 | × | 5,231) | ÷ | 39,004) |
| Dec 31, 2017 | 15.83% | = | 100 | × | 5,460) | ÷ | 34,484) |
| Dec 31, 2016 | 17.34% | = | 100 | × | 5,060) | ÷ | 29,183) |
| Dec 31, 2015 | 18.70% | = | 100 | × | 6,122) | ÷ | 32,735) |
| Dec 31, 2014 | 12.58% | = | 100 | × | 5,736) | ÷ | 45,608) |
| Dec 31, 2013 | 11.58% | = | 100 | × | 5,102) | ÷ | 44,062) |
| Dec 31, 2012 | 10.31% | = | 100 | × | 4,676) | ÷ | 45,352) |
| Dec 31, 2011 | 7.83% | = | 100 | × | 3,998) | ÷ | 51,035) |
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), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 US$ in millions
The financial performance between 2011 and 2018 is characterized by a period of significant expansion in operational efficiency followed by a subsequent phase of gradual margin compression.
- Operating Profit Margin Trend
- A consistent upward trajectory in the operating profit margin was observed from 2011 to 2015, increasing from 7.83% to a peak of 18.70%. After 2015, the margin entered a period of steady decline, retreating to 17.34% in 2016, 15.83% in 2017, and finishing at 13.41% by the end of 2018.
- Revenue and Operating Income Correlation
- Between 2011 and 2016, a notable divergence occurred between top-line revenue and operating income. While sales and other operating revenues declined substantially from 51,035 million US$ to 29,183 million US$, operating income generally trended upward during the first five years, reaching a peak of 6,122 million US$ in 2015. This inverse relationship suggests that the increase in profitability was driven by cost optimization or a strategic shift toward higher-margin products rather than volume growth.
- Post-Peak Analysis
- From 2016 to 2018, a recovery in sales was observed, with revenues climbing back to 39,004 million US$. However, this recovery in top-line growth coincided with a decrease in the operating profit margin. Operating income remained volatile and below the 2015 peak, indicating that the costs associated with increasing sales volume during this period grew at a faster rate than the resulting income.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
LyondellBasell Industries N.V., operating profit margin, long-term trends, comparison to competitors
| LyondellBasell Industries N.V. | Linde plc | |
|---|---|---|
| Dec 31, 2018 | 13.41% | 35.21% |
| Dec 31, 2017 | 15.83% | 21.40% |
| Dec 31, 2016 | 17.34% | 21.25% |
| Dec 31, 2015 | 18.70% | 21.54% |
| Dec 31, 2014 | 12.58% | 21.25% |
| Dec 31, 2013 | 11.58% | 22.01% |
| Dec 31, 2012 | 10.31% | 21.71% |
| Dec 31, 2011 | 7.83% | 21.93% |
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), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).